As of around 9AM (UTC), Bitcoin surged once again to a record high of 73.603$, the highest Bitcoin price ever. All eyes are now on the 75.000$ mark - a number which is bound to make headlines. Both retail and professionals are looking to buy Bitcoin at a pace not witnessed before, causing the leading digital currency of the world to break one record after the other.
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Not longer ago than Monday night, Bitcoin made another comeback and hit a new high of almost $73,000. According to Coingecko, those buying Bitcoin pushed it all the way up to $72,710, which represents an epic rise of just over 50% in the past month. The most positive is that throughout the years, Bitcoin has, due to heavy inflation, made ATHs in all sorts of different currencies. Now, Bitcoin is seemingly making new ATHs for each passing week in its “native” currency, United States dollars. Even better yet, there is still over a month to the Bitcoin halving.
It is of course difficult to point to an exact reason other than an exclusively positive sentiment regarding Bitcoin and the popularity of the spot Bitcoin ETFs. The popularity of the spot Bitcoin ETFs leads to an ever greater inflow of capital into the listed Bitcoin funds, which in turn leads to the providers of these funds having to buy Bitcoin. The net inflow of funds into BlackRock's listed Bitcoin fund, IBIT, is now over $10 billion after just two months. The newly released ETFs are now well on their way to have acquired 5% of Bitcoins circulating supply.
When we wrote during Christmas that: "Bitcoin is on its way to becoming a significant digital asset that you simply cannot ignore", we did not think that the largest capital market in the world would embrace Bitcoin as quickly as it has.
Bitcoin also received traction from London on monday due to the fact that the London Stock Exchange (LSE) announced that they are willing to consider financial instruments with Bitcoin and Ethereum as the underlying as long as a number of strict requirements are met. The market notice from the LSE are grounded in new guidelines from the FCA, a British supervisory body for the financial sector. One must be careful about speculating on future outcomes, but it is evident that financial sectors in other world regions are now showing a greater curiosity towards cryptocurrency and, in particular, Bitcoin. At the end of January, we mentioned how the top financial regulatory body in South Korea has changed its stance on Bitcoin ETFs.
This text is intended to inform and is not an investment recommendation.
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Adam Jakobsen.
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