Bitcoin, the world’s most valuable cryptocurrency, reached an all-time high on Monday, surpassing the $72,000 mark, as its upward momentum continued unabated.
The cryptocurrency was last seen trading at $72,649, reflecting a 4.4% increase after briefly touching $72,739.
Capital Flow Dynamics
The surge is attributed to several factors, including the influx of capital into new spot bitcoin exchange-traded funds (ETFs) and optimistic expectations of a potential interest rate cut by the Federal Reserve.
Analysts from Bitfinex emphasized the remarkable strength and resilience of Bitcoin, noting that the recent surge represents a significant milestone and reflects ongoing confidence and demand in the market.
Despite a slight slowdown in the flow of capital into the top 10 US spot bitcoin ETFs, which reached a two-week low by March 8, the total still amounted to nearly $2 billion, according to data from the London Stock Exchange Group (LSEG).
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Bitcoin’s Unpredictable Price Movements
DailyFX strategist Nick Cawley highlighted Bitcoin’s impact on the broader cryptocurrency space, stating that its surge at the beginning of the week has positively influenced other digital assets. Looking ahead, the supply of bitcoin is set to become more limited in April due to the upcoming halving event, further tightening the available tokens.
As Bitcoin, with less than two decades as a financial asset, continues to exhibit unpredictable price movements, industry observers remain cautious, recalling the cryptocurrency’s crash in November 2021 after reaching a previous record.
In the United Kingdom, the Financial Conduct Authority (FCA) paved the way for digital asset trading products, allowing recognized investment exchanges to launch crypto-backed exchange-traded notes (ETNs).
However, the FCA emphasized that these products would be restricted to professional investors such as authorized investment firms and credit institutions, warning of potential harm to retail investors.
Ether, the second-largest cryptocurrency, also experienced gains, rising to $4,062.07, nearing its highest level in two years. Speculation around potential approval for spot ether ETFs by U.S. regulators has driven the cryptocurrency’s price up by 75% this year.
In the crypto stock market, Coinbase shares rose 2.8%, while crypto miners Riot Platforms and Marathon Digital experienced declines of 2.2% and 6.1%, respectively.
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