Bitcoin soars to a record of almost $72,000



With increased trading accessibility and a weaker dollar, the most popular cryptocurrency in the world, Bitcoin, surged to an all-time high near $72,000 on Monday.
As dealers also kept an eye on an impending industry event that may restrict the supply of bitcoin, the virtual unit hit $71,829 in value.
Monday’s surge continued the record-breaking run that began last week, when the currency roared past its previous peak of $68,991 in November 2021.
On Monday, Bitcoin gained more traction as the UK’s Financial Conduct Authority, a watchdog, announced that it would follow US regulators in permitting the issuance of securities linked to cryptocurrencies.

The US authorities approved exchange-traded funds (ETFs) linked to the spot price of bitcoin earlier this year, facilitating the addition of the unit to the portfolio of mainstream investors.

“Going mainstream” with cryptocurrencies

XTB analyst Kathleen Brooks told AFP that the FCA statement “suggests that crypto is going mainstream, and not just bitcoin but other established coins.”
We are aware of the demand, which has been bolstered by $10 billion in inflows into US bitcoin exchange-traded funds.
ETFs are commonly considered by analysts as evidence of institutional investors’ growing interest in cryptocurrencies, which increases investor excitement.

When powerful computers solve challenging puzzles to confirm transactions made on the blockchain, Bitcoin is created, or “mined.”
However, there will soon be a split in the payout made to bitcoin “miners,” or individuals who validate transactions and help build the network.
Due to a shortage of supply, the unit’s price has been strongly supported in recent days and weeks by the alleged “halving” that will take place next month.
According to City Index analyst Fiona Cincotta, “Bitcoin has surged to a fresh all-time high, boosted by strong ETF inflows and ahead of the April halving event.”

She mentioned “fear of missing out” (FOMO) and added, “The crypto market has skyrocketed 350 per cent from its 2022 low and shows little sign of stopping after the doors have been opened to institutional investors and as retail investors experience it.”
$100,000 might become “the next natural target,” according to Cincotta, but he issued a warning.
She cautioned, “Bitcoin is very volatile and could drop just as quickly as it has risen.”

The US jobs statistics released on Friday confirmed expectations that the Federal Reserve will continue to lower interest rates in June, which gave rise to more momentum in the weaker dollar.
Bitcoin’s price has increased by about 70 percent since January, when it was trading at roughly $43,000.
But once the cryptocurrency exchange FTX crashed in November 2022, it fell to $15,000.
There is a limited quantity of units in the digital money. The maximum quantity of bitcoins, as set by its creator Satoshi Nakamoto, is 21 million.

Meanwhile, a London court case is still pending to ascertain whether Australian computer scientist Craig Wright is the inventor of Bitcoin.
Wright claims to be Nakamoto, the author of the 2008 white paper that popularized cryptocurrencies.
Wright is being sued by the Crypto Open Patent Alliance (COPA), a nonprofit organization founded to prevent patents on cryptocurrency technologies.


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