Bitcoin has broken through its previous records, reaching a remarkable high above $72,000 on Monday. The cryptocurrency’s bull run remains relentless, with its price witnessing a surge of over 60% since the beginning of the year, propelling its total market cap to an unprecedented $1.4 trillion. This achievement places Bitcoin as the 8th largest financial asset globally.
Bitcoin’s remarkable rally saw its price spiking to over $72,000, setting a new all-time high. At around 6:50 a.m. ET, Bitcoin’s price surged over 3%, reaching $72,211.51 before slightly retreating to below $71,530.13 by 7:15 a.m. ET. This surge signifies the cryptocurrency’s robust performance in recent weeks.
Ether, the second-largest cryptocurrency, also experienced positive movement, climbing more than 2% to reach $4,041.23. The cryptocurrency market is witnessing increased support from various factors, including an Ethereum blockchain platform upgrade and an upcoming Bitcoin “halving” event in April, which will impact the rate at which new Bitcoins are created.
Global economic dynamics, including a weakening U.S. dollar and declining U.S. Treasury bond yields, contribute to the favorable environment for cryptocurrencies. This is evident in the recent surge in gold prices, which exceeded $2,187 per ounce.
The cryptocurrency market’s positive momentum is further fueled by the approval of eleven spot Bitcoin ETFs in the U.S. This regulatory green light from the Securities and Exchange Commission (SEC) in January marked a significant milestone for the cryptocurrency industry. In response to this development, the Financial Conduct Authority (FCA) in the UK stated that it would not object to recognized investment exchanges creating a UK-listed market segment for crypto-backed exchange-traded notes (ETNs).
The FCA clarified that only professional investors would be allowed to purchase these ETNs, emphasizing the risks associated with crypto-assets. Retail investors in the UK remain prohibited from buying crypto-linked ETNs or derivatives due to their perceived high risk.
While acknowledging the positive developments, the FCA maintained its cautionary stance, stating, “cryptoassets are high risk and largely unregulated. Those who invest should be prepared to lose all their money.” Reflecting on Bitcoin’s journey, a lot has changed in the cryptocurrency markets since March 11, 2023, when Bitcoin faced skepticism and a dip to $20,000.
