Bitcoin continues to show strength as it enters the new week, reaching an unprecedented high and extending the gains it has recently made. As the leading cryptocurrency in the market, Bitcoin last registered a surge of 4%, taking its value up to $72,492.42, as reported by Coin Metrics. Even before this, Bitcoin had already made headlines as it attained a new all-time high, with its value reaching an impressive $72,750.16.
The past week, in particular, witnessed new records being set by Bitcoin amidst fluctuating trading, marking the first such instances since 2021. However, over the weekend, the trading activity around Bitcoin quieted down a bit and was comparatively more reserved. Despite this lull, Bitcoin’s rising momentum remains undeterred as it opens the week on a very promising note.
The continuous inflow into spot bitcoin exchange-traded funds (ETFs) in the U.S. is contributing significantly to the price dynamics of the cryptocurrency. CoinShares reports that last week saw a record amount of $2.7 billion flowing into crypto investment products. This has taken the total inflows this year to $10.3 billion, which is close to the record amount of $10.6 billion observed for the entire 2021.
Simultaneously, the crypto market is experiencing increased leverage, leading to the largest price fluctuations in almost a year. The funding rates are currently at their highest since January 2021 and the open interest in Bitcoin is at an all-time high. This suggests that there is significant interest and activity in the futures market, which could potentially impact the price volatility of Bitcoin moving forward.
Ether, the digital currency related to the Ethereum network, recently exceeded $4,000 for the first time since December 2021, partly due to the influence of bitcoin. The currency was noted to increase by 4%, settling at $4,063.43.
Investor anticipation is also geared towards Ethereum network’s impending considerable tech upgrade known as “Dencun.” Previously, the cryptocurrency has experienced price surges leading to the day of the upgrade, followed by selling activities once the event occurs.
Alex Saunders, a Citi analyst, stated on Monday that the price activity for Dencun could differ because of other key crypto catalysts in effect such as the inflows into bitcoin ETFs, the approaching Bitcoin halving, and the possibility of SEC approving the trading of spot ether ETFs in the U.S. in May.
Following Bitcoin’s ascent to a new all-time high, companies linked to the price of bitcoin witnessed an upward trend. Crypto exchange Coinbase advanced 3.5% while Microstrategy, a Bitcoin surrogate, saw a 9% increase after buying approximately another 12,000 bitcoins, amounting to more than $821 million in cash.
However, mining companies showed mixed results. Marathon Digital lost 3.75%, and CleanSpark declined 4%, while Iris Energy gained 2.6%, and Riot Platforms remained stable.
In other developments, the UK’s Financial Conduct Authority announced on Monday that it will permit exchanges to list cryptocurrency-related exchange-traded products for the first time, following the initiation of spot bitcoin ETFs trade in the U.S. two months ago.
The FCA declared that it wouldn’t object to requests to create a UK-listed crypto-backed exchange-traded notes (ETNs) market segment from recognized investment exchanges. The London Stock Exchange (LSE) plans to accept applications for the admission of bitcoin and ether ETNs from the second quarter this year.
Supporters of Bitcoin assert this move will result in increased institutional investment into Bitcoin and other cryptocurrencies, which will positively impact the price as it attracts more substantial financial investment.
