ISLAMABAD: Bitcoin surged to a fresh all-time high above $71,000 on Monday, driven by increasing demand for the cryptocurrency amidst growing optimism regarding potential interest rate cuts by the Federal Reserve.
During afternoon trading in Asia, Bitcoin reached a peak of $71,432, marking a remarkable 70 percent gain since the beginning of the year.
The rally was buoyed by news from the UK’s Financial Conduct Authority, which announced its approval for the creation of crypto-related securities.
Additionally, US authorities had earlier given the green light for exchange-traded funds (ETFs) tied to bitcoin’s spot price, enticing mainstream investors to diversify their portfolios by embracing the cryptocurrency.
According to Forbes, Bitcoin’s price surged to an unprecedented level, surpassing $71,000 and hitting a high of $71,180 during early European trading hours.
This surge reflects sustained interest and confidence in Bitcoin, further bolstered by the introduction of new spot bitcoin ETFs, which have expanded investor access to the digital asset.
The anticipation of potential Federal Reserve rate cuts has also contributed to this positive sentiment.
The launch of spot bitcoin ETFs in January triggered a significant influx of capital into Bitcoin, with these ETFs attracting nearly $8 billion in investments within just two months.
This surge underscores the widespread demand for this new asset class among both individual and institutional investors.
Market analysts attribute Bitcoin’s record-breaking performance to a combination of excitement surrounding the ETFs and macroeconomic factors.
Furthermore, anticipation is building around the upcoming bitcoin “halving,” an event in bitcoin’s protocol that reduces the daily production of new coins.
Historically, such events have led to significant price appreciation for bitcoin, driven by a tightening supply, as observed in previous market cycles.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
