(Updated prices, added analyst comment to paragraph 4, background to paragraph 9, virtual currency to paragraph 17)
Written by Hannah Lang, Amanda Cooper, Harry Robertson
WASHINGTON/LONDON, March 11 (Reuters) – Bitcoin hit a record high of more than $72,000 on Monday, with the biggest cryptocurrency showing no signs of letting up.
Bitcoin last rose 4.4% to $72,649, after rising as high as $72,739.
The world's most valuable cryptocurrency is seeing a huge influx of cash into a new Spot Bitcoin exchange-traded fund (ETF), raising hopes that the Federal Reserve may soon cut interest rates.
“Bitcoin’s recent surge in value highlights the remarkable strength and resilience of the leading cryptocurrency. This achievement not only marks an important milestone but also demonstrates continued confidence and demand in the market. ,” Bitfinex analysts said in a research note.
Flows into 10 U.S. spot Bitcoin exchange-traded funds slowed to a two-week low in the week ending March 8, but still reached nearly $2 billion, according to LSEG data.
“Bitcoin started the week with a sharp rally, and other crypto markets are rising along with it,” said Nick Corey, strategist at DailyFX.
Bitcoin's supply, which is limited to 21 million tokens, is expected to become even tighter in April when the so-called “halving” event takes place.
Every four years, the rate at which new supply circulates and the rewards to crypto miners halve, which tends to support prices.
Bitcoin has been around as a financial asset for less than 20 years, so predicting its price trajectory remains extremely difficult. Just months after Bitcoin reached an all-time high in November 2021 due to a retail boom, the cryptocurrency crashed, engulfing half of the crypto industry.
Britain's financial watchdog on Monday became the latest regulator to pave the way for digital asset trading products.
saying
On Monday, recognized investment exchanges will be allowed to issue listed securities backed by cryptocurrencies.
The UK regulator said in a statement from the Financial Conduct Authority (FCA) that these products are only available to professional investors, such as investment firms and credit institutions authorized to operate in financial markets.
The FCA has warned that crypto ETNs (bonds issued by financial institutions that track the performance of underlying assets) could harm retail investors.
Despite this, demand is growing across the investment community.
Asset managers currently hold the largest bullish positions in Bitcoin futures in history, according to weekly data from the U.S. Commodity Futures Trading Commission.
In the week ending March 5, net long positions held by asset managers (usually interpreted to cover holdings of institutional investors such as mutual funds and pension funds) increased to 15,531 lots. , which is worth $5.5 billion based on current Bitcoin prices.
Ether rose 3.97% to $4,062.07, near a two-year high. Speculation that U.S. regulators will approve the listing of a Spot Ether ETF this year has pushed its price up 75% this year.
Among crypto stocks, Coinbase's stock price rose 2.8%, while crypto miners Riot Platforms and Marathon Digital fell 2.2% and 6.1%, respectively. (Reporting by Hannah Lang in Washington and Harry Robertson and Amanda Cooper in London; Editing by Louise Heavens and Richard Chan)
