Bitcoin surged to a record high above $72,000 on Monday, driven by increased trading accessibility and a weakening US dollar. The cryptocurrency reached $72,717 as traders anticipated an upcoming industry event expected to limit supply and boost prices. This rally followed last week’s breaking of the previous peak set in November 2021 at $68,991.
It received a further boost on Monday after the UK’s Financial Conduct Authority announced plans to permit the creation of crypto-related securities, aligning with US regulators who approved exchange-traded funds (ETFs) linked to it’s spot price earlier this year. This move is seen as a sign of cryptocurrency’s growing mainstream acceptance, according to XTB analyst Kathleen Brooks, especially considering the significant inflows of $10 billion into bitcoin ETFs in the US.
Bitcoin
The approval of ETFs is seen as evidence of increasing interest in crypto from institutional investors, fueling optimism among market participants. Bitcoin’s supply is set to decrease next month through a process known as “halving,” where the rewards given to miners for validating transactions on the blockchain are halved. This reduction in supply has contributed to the recent price surge of the cryptocurrency.
