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Sunday, July 21, 2024

When Bitcoin Hits An All-Time High of $71,000, Why Is Cryptocurrency Increasing?

<p>With no indication that its ascent would slow down, Bitcoin reached a new all-time high on Monday and broke beyond the $71,000 mark. The decision follows the announcement on Monday that the British Financial Watchdog would now allow reputable investment exchanges to introduce exchange-traded notes backed by cryptocurrencies, making it the latest regulator to open the door for digital asset trading instruments.</p>
<p><img decoding=”async” class=”alignnone wp-image-498008″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-when-bitcoin-hits-an-all-time-high-of-71000-why-is-cryptocurrency-increasing-image.jpg” alt=”theindiaprint.com when bitcoin hits an all time high of 71000 why is cryptocurrency increasing image” width=”977″ height=”732″ title=”When Bitcoin Hits An All-Time High of $71,000, Why Is Cryptocurrency Increasing? 24″></p>
<p>In European trading, Bitcoin increased by 4.8% to a record $71,677, increasing its gains for the year to 70%.</p>
<p>The world’s most valuable cryptocurrency has seen a surge in value due to expectations that the Federal Reserve would soon lower interest rates and a rush of money into recently launched spot bitcoin exchange-traded funds.</p>
<p>According to LSEG statistics, capital flows into the top ten US spot bitcoin exchange-traded funds decreased to a two-week low in the week leading up to March 8 but remained close to $2 billion.</p>
<p>“Bitcoin has surged to a fresh record high, surpassing $71,000, marking a significant milestone in the crypto market,” said Sumit Gupta, co-founder of CoinDCX. A major factor in this noteworthy gain is the growing interest from institutions, especially in well-known assets like Ethereum and Bitcoin. A significant push has been the launch of Bitcoin exchange-traded funds (ETFs), which provide a safe and convenient way for a wide spectrum of investors to become involved in the cryptocurrency market.</p>
<p>The quick rise of BlackRock’s bitcoin ETF, he said, “underlines the growing institutional adoption and its role in driving the current market rally.” The fund now manages assets worth over $10 billion. Aside from this, other significant contributors to the current optimistic market attitude include the approaching Bitcoin Halving and the expectation around the approval of the Ethereum ETF.</p>
<p>“The current crypto market rally has taken even the most optimistic crypto supporters by surprise,” stated Parth Chaturvedi, lead investor at CoinSwitch Ventures. “The price is being driven by massive institutional interest, in the form of strong inflows into the recently launched Spot Bitcoin ETFs in the US.” After going live in less than two months, Blackrock’s IBIT and Fidelity’s FBTC have amassed AUMs of over $12 billion and $7.5 billion, respectively. The pace of accumulation and the ensuing price increase were unanticipated, despite the fact that the majority of analysts had anticipated similar flows throughout the whole year 2024.</p>
<p><strong>How do traders proceed?</strong></p>
<p>Following these movements should be a good way for investors to predict future price movements, he added, as rising demand combined with the impending supply drop (from the fourth halving) may cause prices to rise.</p>
<p>Given that the price of BTC is already above its all-time high, traders can also anticipate more volatility around the anticipated halving in April. When using leverage, investors would need to exercise extreme caution and due diligence since volatile swings may cause liquidations, according to Chaturvedi.</p>
<p>Volumes in the cryptocurrency market are already surging. Retail involvement is still far from the frenzy of 2021, however. We may anticipate a rise in popular interest in cryptocurrencies as an asset class.</p>
<p>He said that Ethereum, the second-largest cryptocurrency by market capitalization, had increased by about 15% in the previous week and was now trading just over $4,000, with all-time highs clearly within reach.</p>
<p>The forthcoming DenCun Upgrade, which takes place this week and will greatly enhance the efficiency of its rollup-centric plan, will cause the emphasis to continue moving towards ETH. Fidelity and Blackrock have also submitted applications for approval of spot ETH ETFs, with a deadline of May 2024. If authorized, the price of ETH may witness a similar increase that would resemble the recent spike in BTC, according to Chaturvedi.</p>

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