Bitcoin has set a new record by surpassing $71,000, cementing its status as gold’s digital counterpart and overtaking silver’s market cap.
Bitcoin a bit close to $73,000
This feat, which has occurred with remarkable frequency since early March, caused Bitcoin to register an all-time high new all-time high of $72,750 today, representing a 5% daily increase and a 12% increase over the past week. The cryptocurrency’s consistent rise underlines its relentless rise in the financial world.
Amid the UK financial regulator’s announcement that it would allow trading in cryptocurrency-backed securities, Bitcoin’s price rose to a new all-time high of nearly $73,000. The leading cryptocurrency has erased its previous peak of nearly $69,000 from November 2021.
On Monday, the Financial Conduct Authority announced it would not object to investment exchanges creating a market segment for crypto-asset-backed exchange-traded notes. [cETNs]a stock-like financial instrument, on the British list.
This increase in value has also occurred in the few months since the alpha crypto assets surpassed Tesla, Meta and Berkshire Hathaway, cementing its status as the eighth largest asset in terms of market capitalization, which currently stands at a remarkable $1.4 trillion. Although still in the shadow of industry titans like Microsoft, Apple and Amazon, Bitcoin’s rise has been nothing short of spectacular.
BTCUSD currently trading at $71,567 on the 24-hour chart at TradingView.com
The FCA said it maintains its position that cryptoassets are primarily unregulated and ‘risky investments’. and that investors should anticipate the complete loss of their capital, the regulator said in a statement.
Neil Wilson, chief analyst at brokerage Finalto, described the FCA’s action on the cryptocurrency market as “positive”. Regarding the sharp price increases, he further explained this “parabolic” market movements tended to end with a significant pullback, but “we can no longer be sure with bitcoin,” he pointed out.
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Meanwhile, a notable catalyst propelling this bullish upswing is Bitcoin’s upcoming halving, which will take place in about 35 days, according to NiceHash. This incident, which has occurred three times before, involves a reduction in the compensation provided to Bitcoin miners for processing newly added blocks on the network.
As a result of this fourth halving, the incentive will decrease from 6.25 BTC to 2.125 BTC, further reducing the supply of new coins.
Similar to the scarcity of gold, this scarcity-driven paradigm has long been considered a fundamental part of Bitcoin’s value trajectory. In the same way that the scarcity of gold serves as a basis for its value, the halving of new Bitcoin supply events strengthens Bitcoin’s appeal as a store of value in the digital age.
Featured image from Belle Co/Pexels, chart from TradingView
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