Bitcoin hits record above $71,000

Flows of capital into 10 largest US spot bitcoin exchange-traded funds slowed to a two-week low in the week to March 8

LONDON:

Bitcoin hit a record high on Monday above $71,000, as the surge in the biggest cryptocurrency showed no signs of slowing down.

Britain’s financial watchdog on Monday became the latest regulator to pave the way for digital asset trading products after saying on Monday it will now permit recognised investment exchanges to launch crypto-backed exchange-traded notes. Bitcoin rose by as much as 4.8% to a record $71,677 in European trading, bringing gains for the year so far to 70%.

The world’s most valuable cryptocurrency has been boosted by a flood of cash into new spot bitcoin exchange-traded funds as well as hopes that the Federal Reserve will soon cut interest rates.

Read: Bitcoin defies its doubters in 2023

Flows of capital into the 10 largest US spot bitcoin exchange-traded funds slowed to a two-week low in the week to March 8, but still reached almost $2 billion, according to LSEG data.

“Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it,” DailyFX strategist Nick Cawley said. Supply of bitcoin, which is limited to 21 million tokens, is going to get tighter in April, when the so-called halving event takes place.

Published in The Express Tribune, March 12^th, 2024.

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