Breaking Records: Bitcoin Surges Beyond $71K as FCA Greenlights Institutional Crypto Investments
Bitcoin (BTC) reached a milestone on Monday, crossing $71,000 for the first time ever in the Asian trading hours. This achievement comes after the approval of spot bitcoin exchange-traded funds in the U.S. and the token’s previous milestone of crossing $70,000 last week. As the price continues to rise, here’s why experts believe this rally is far from over.
Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High
One significant factor contributing to Bitcoin’s rise is the consistent development and growth of its ecosystem. As BTC reached a fresh high for 2023, experts point to the various developments and innovations within the industry that have contributed to this milestone.
For instance, Presidential Candidate Vivek Ramaswamy has been very vocal about his support for cryptocurrencies. His stance on the matter has been welcomed by the crypto community, which sees it as a positive step towards mass adoption.
Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood
Bitcoin’s rally has also been fueled by bullish sentiment in the market, with over $1 billion in BTC being withdrawn from exchanges. This suggests that investors are confident in the long-term growth of BTC and are holding onto their assets for the long haul.
Why Financial Advisors Are So Excited About a Spot Bitcoin ETF
The recent approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. has sparked excitement among financial advisors. This move is seen as a significant step towards mainstream adoption and paves the way for more investors to enter the crypto market.
Ether (ETH) Hit $4,000, CoinDesk 20 Index Jumps Nearly 1%
As Bitcoin reached new peaks, so did Ethereum (ETH), which crossed $4,000 on Monday. This milestone has also contributed to the overall growth of the broader cryptocurrency market as seen in the CoinDesk 20 index, which jumped nearly 1%.
Bitcoin Premium on Major Exchanges Above 25%
The recent rally has also caused the annualized three-month futures premium on major exchanges like Binance to exceed 25%. This premium can attract cash and carry traders, leading to increased market liquidity.
Uncertainty Surrounding Bank of Japan
The volatility of the crypto market is not just affected by internal factors but also external ones, such as the uncertainty surrounding the Bank of Japan (BOJ). Reports suggest that the BOJ could raise its benchmark interest rate above zero, leading to a decline in equity markets such as Japan’s Nikkei and Australia’s ASX.
However, experts believe any dip in Bitcoin’s price due to external uncertainties will be short-lived, thanks to strong inflows into U.S.-listed spot ETFs and the upcoming reward halving.
Institutional Investors Can Now Create Crypto Asset-Backed Exchange-Traded Notes
The U.K.’s Financial Conduct Authority has opened doors for institutional investors to create crypto asset-backed exchange-traded notes (ETNs). This move has been welcomed by the crypto community as it further legitimizes the industry and could attract more institutional investors.
London Stock Exchange Accepting Applications for Bitcoin and Ether ETNs
In line with the FCA’s decision, the London Stock Exchange has confirmed that it will accept applications for bitcoin and ether ETNs in the second quarter of this year. This move further cements the growing acceptance and adoption of cryptocurrencies in the mainstream financial markets.
It is clear that Bitcoin’s recent milestone is not just a fluke, but a result of continual growth and progress within the industry. With developments in regulations, institutional adoption, and innovation, experts believe this rally is far from over. As the industry continues to mature and evolve, there is much to look forward to in the world of cryptocurrencies.
