OAN’s Elizabeth Volberding
3:00 PM – Monday, March 11, 2024
Following the approval of an investment vehicle supported by cryptocurrencies by a United Kingdom financial regulator, Bitcoin rose to a record high of over $72,000 on Monday.
Monday saw a milestone high for Bitcoin as it broke above $72,000 for the first time ever.
After suffering a severe year-long bear market that featured a near-80% price loss, the cryptocurrency has decisively broken beyond its record high of $69,000 set in November 2021.
Since there appears to be an imbalance in the supply and demand of Bitcoin, investors are suddenly calling for more of the cryptocurrency. Monday’s trading showed that Bitcoin reached $72,166, just a few days after it exceeded the previous peak of around $69,000 from November 2021.
Since spot bitcoin exchange-traded funds (ETFs) were introduced in January, demand for Bitcoin has increased, with over $20 billion flowing into the two most well-liked Bitcoin ETFs provided by Fidelity and BlackRock.
The price of bitcoin fell by 10% after surpassing that barrier last week before rising to its present levels.
The UK agency in charge of overseeing financial matters, the Financial Conduct Authority, said that it will “not object” if exchanges establish a market segment for exchange-traded notes, or cETNs, backed by cryptocurrency assets that are listed in the UK.
The financial instruments that will soon be available allow traders to purchase and sell assets whose prices change in tandem with a certain cryptocurrency. Traders can effectively invest in cryptocurrencies through publicly listed assets, getting rid of the hassle and technical difficulty of actually obtaining a cryptocurrency.
The Financial Conduct Authority warned traders about the risks involved with investing in cryptocurrencies even though it approved cETNs. The authority also stated that the products will not be offered to retail investors.
“The FCA continues to remind people that crypto assets are high risk and largely unregulated. Those who invest should be prepared to lose all their money,” the agency said in a statement.
The record-high comes after the United States Securities and Exchange Commission (SEC) authorized Bitcoin Exchange-Traded Funds, or Bitcoin ETFs, in January.
Additionally, investors can invest in an asset that follows the price movement of Bitcoin through a Bitcoin ETF without having to put money into the cryptocurrency itself.
The price of Bitcoin skyrocketed after the SEC’s approval of Bitcoin ETFs, driven up by a wave of new investment.
Several Bitcoin ETFs became available shortly after the SEC approved the new investment option. These included products from established companies like Franklin Templeton and Fidelity.
The price of Bitcoin has increased by 54% since the approval of Bitcoin ETFs on January 10th.
Bitcoin’s price has historically fluctuated significantly, due to the current gains that have occurred at a quick pace.
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