Bitcoin hits record above $72,000 as demand frenzy intensifies By Reuters

© Reuters. Representations of cryptocurrency Bitcoin are seen on this illustration image taken in Paris, France, March 9, 2024. REUTERS/Benoit Tessier/Illustration/file photograph

By Hannah Lang, Amanda Cooper and Harry Robertson

WASHINGTON/LONDON (Reuters) -Bitcoin hit a document excessive on Monday above $72,000, as the largest cryptocurrency’s surge confirmed no indicators of slowing down.

was final up 4.4% at $72,649 after reaching as excessive as $72,739.

The world’s most useful cryptocurrency has been boosted by a flood of money into new spot bitcoin exchange-traded funds and hopes that the Federal Reserve will quickly lower rates of interest.

“The current surge in Bitcoin’s worth … underscores the outstanding energy and resilience of the main cryptocurrency. This achievement not solely marks a big milestone but additionally displays the continued confidence and demand available in the market,” Bitfinex analysts stated in a analysis notice.

Flows of capital into the ten largest U.S. spot bitcoin exchange-traded funds slowed to a two-week low within the week to March 8, however nonetheless reached nearly $2 billion, LSEG information confirmed.

“Bitcoin has began the week with a surge, dragging the remainder of the cryptocurrency house increased with it,” DailyFX strategist Nick Cawley stated.

Provide of bitcoin, which is restricted to 21 million tokens, is ready to get tighter in April, when the so-called “halving” occasion takes place.

Each 4 years, the speed at which new provide is launched into circulation, in addition to the reward for crypto miners, is halved, which tends to assist the value.

Since bitcoin has lower than 20 years as a monetary asset, predicting its worth trajectory stays extraordinarily difficult. Simply months after retail exuberance helped drive bitcoin to its earlier document in November 2021 the cryptocurrency crashed, taking half the crypto business with it.

Britain’s monetary watchdog on Monday turned the newest regulator to pave the way in which for digital asset buying and selling merchandise after saying on Monday it is going to now allow acknowledged funding exchanges to launch crypto-backed exchange-traded notes.

The UK regulator stated these merchandise could be solely accessible for skilled traders corresponding to funding companies and credit score establishments authorised to function in monetary markets, the Monetary Conduct Authority (FCA) stated in an announcement.

The FCA warned that crypto alternate traded notes (ETNs) – bonds issued by monetary establishments that observe the efficiency of underlying belongings – may hurt retail traders.

Nonetheless, demand is selecting up throughout the funding neighborhood.

Asset managers now maintain the largest bullish place in bitcoin futures on document, weekly information from the U.S. Commodity Futures Buying and selling Fee confirmed.

Within the week to March 5, the online lengthy place held by asset managers – often interpreted as overlaying holdings of institutional traders corresponding to mutual funds and pension funds – rose to fifteen,531 heaps, price $5.5 billion based mostly on the present bitcoin worth.

Ether rose 3.97% to $4,062.07, round its highest for 2 years. Hypothesis that U.S. regulators might approve the itemizing of spot ether ETFs this yr has pushed the value up 75% this yr.

In crypto shares, shares of Coinbase (NASDAQ:) rose 2.8%, whereas crypto miners Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:) fell 2.2% and 6.1%, respectively.