Bitcoin hits a new all-time high, surpassing $71,000

 

On Monday, Bitcoin reached a new milestone, exceeding $71,000, driven by increasing demand for cryptocurrency and positive sentiment regarding potential interest rate cuts by the Federal Reserve this year. 

Bloomberg data indicates that Bitcoin reached its highest point at $71,432 during afternoon Asian trading, marking a nearly 70 percent surge in value for the year. 

The rally was further fueled by the announcement from the Financial Conduct Authority in Britain, stating its approval for the development of crypto-related securities.

This surge follows the approval by US authorities earlier this year for exchange-traded funds linked to the spot price of bitcoin. The decision has encouraged certain mainstream investors to diversify their portfolios by incorporating the cryptocurrency. 

Institutional investors, traditionally cautious due to the volatile nature of cryptocurrencies, are increasingly engaging in long-term investments. 

This shift in strategy is seen as a contributing factor to the current surge in Bitcoin. Notably, during the week ending March 1, net inflows to the leading Top 10 U.S. spot Bitcoin funds amounted to $2.2 billion, with a substantial portion, over $2 billion, directed towards BlackRock's iShares Bitcoin Trust (IBIT). Experts view this trend as a significant endorsement for the cryptocurrency market.

Bill Ackman, a prominent hedge fund manager, has redirected his attention towards Bitcoin and outlined a scenario in which the value of the world's largest cryptocurrency could experience a surge surpassing conventional predictions.

Taking to his verified X Account, this is what he had to say:  

Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues. Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses. Maybe I should buy some Bitcoin.