Bitcoin Prices Hit Record Highs Above $71,000 As Demand Rises

(CTN News) – Despite no signs of bitcoin slowing down, the biggest cryptocurrency hit a record high of $71,000 on Monday.

According to the British financial watchdog, it will now permit recognized investment exchanges to launch crypto-backed exchange-traded notes on Monday, making it the latest regulator to open the door for digital asset trading products.

In European trading, Bitcoin rose by as much as 4.8% to a record $71,677, bringing its gains for the year to 70%.

As new spot bitcoin exchange-traded funds have emerged, as well as hopes that the Federal Reserve will cut interest rates soon, the world’s most valuable cryptocurrency has been boosted.

LSEG data indicates that capital flows into the ten 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 DailyFX strategist Nick Cawley, “Bitcoin has started the week on a high note, pulling the rest of the cryptocurrency space with it.”

The supply of bitcoin, which is limited to 21 million tokens, will become more constrained in April as a result of the so-called halving event.

A halving of the supply rate as well as the reward for crypto miners occurs every four years, which tends to support the price of cryptocurrencies.

A report earlier in the day that the London Stock Exchange plans to accept bitcoin and ethereum ETN applications in the second quarter may have contributed to today’s higher price, according to Cawley.

A statement from the Financial Conduct Authority (FCA) stated that these products would only be available to professional investors such as investment firms and credit institutions that are authorized to operate in financial markets.

Investors should be aware that crypto exchange traded notes (ETNs) – bonds issued by financial institutions that track the performance of underlying assets – could harm them.

However, there is an increase in demand among investors.

US Commodity Futures Trading Commission data show that asset managers hold thelargest bullish position in bitcoin futures ever recorded.

As of March 5, the net long position held by asset managers – which is typically interpreted as covering holdings of institutional investors such as mutual funds and pension funds – rose to 15,531 lots, valued at $5.5 billion.

As per LSEG data, this represents a greater value than the long position asset managers hold in sterling, worth $2.78 billion, or the bearish position they hold in the Japanese yen against the dollar, worth $1.49 billion.

In the past two years, Ether has risen by around 2.1% to reach around $4,000, its highest point since 2012. It has been speculated that US regulators may approve the listing of spot ether ETFs this year, which has led to a 75% increase in the price.

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