Bitcoin Shatters Records, Surges Past $72,000 in Meteoric Rise

The demand for the most popular cryptocurrency, bitcoin, is still growing and on Monday it hit an all-time high of around $72,000, according to Reuters sources.

With a 4.4% gain coupled with its most recent spike, which peaked at $72,739, the value of Bitcoin is presently $72,649.

Exuberant hopes of a probable Federal Reserve interest rate decrease and a massive inflow of cash into brand-new spot bitcoin exchange-traded funds have been blamed for the spike.

Bitcoin's Resilience Proven: Surges in Value Amid Market Volatility

The most popular cryptocurrency's extraordinary tenacity and durability are shown by the recent spike in its value. As per Reuters,

Bitfinex experts stated, "This accomplishment not only signifies a noteworthy turning point but also demonstrates the ongoing trust and need in the market."

Analyst Nick Cawley of DailyFX said, "Bitcoin has started the week with a surge, dragging the rest of the cryptocurrency space higher with it."

Even though they slowed to a two-week low in the week before March 8, capital flows into the top 10 US spot bitcoin exchange-traded funds reached about $2 billion.

Experts point out that while bitcoin keeps rising, there will be a "halving" event in April that would reduce the amount available.

 Bitcoin Halving Event: Impact on Miners and Cryptocurrency Supply

This occurrence happens every four years, which lowers the incentive for cryptocurrency miners and slows down the rate at which new supply enters the market.

In the past, these halving occasions have helped to maintain the price of cryptocurrencies.

With less than two decades of experience as a financial asset, Bitcoin's unpredictable price trend continues to be a difficulty, even with the current spike.

One more authority to approve digital asset trading products is the Financial Conduct Authority (FCA) in the United Kingdom.

With a warning that these products should only be available to experienced investors, the FCA stated that it has given recognized investment exchanges permission to introduce exchange-traded notes (ETNs) backed by cryptocurrency.

While noting the increasing demand for such products among the financial world, the FCA voiced worries about the possible harm that crypto ETNs might cause to regular investors.

Asset managers currently have the highest bullish position in bitcoin futures on record, according to data from the US Commodity Futures Trading Commission.

Institutional Investors Bullish on Bitcoin: Net Long Position Hits $5.5 Billion

The net long position that asset managers held increased to 15,531 lots, valued at $5.5 billion based on the current price of Bitcoin.

This position is sometimes seen as an indication of the holdings of institutional investors, such as pension funds and mutual funds.

Meanwhile, Ether, a cryptocurrency, surged 3.97 percent to $4,062.07 due to rumors that US authorities would authorize spot ether ETF listings this year, which would enhance its value by 75% by 2024.

In terms of cryptocurrency stocks, Coinbase's shares increased by 2.8%, whereas the shares of cryptocurrency miners Riot Platforms and Marathon Digital decreased by 2.2% and 6.1%, respectively.