tl;dr
Bitcoin and ether reached new highs, with the leading cryptocurrency surpassing $71,000 and ether crossing $4,000. The U.K.'s FCA removed objections to crypto-based ETNs, allowing for more institutional involvement in crypto, while the Bank of Japan may lift the benchmark interest rate above zero th...
Bitcoin and ether reached new highs, with the leading cryptocurrency surpassing $71,000 and ether crossing $4,000. The U.K.'s FCA removed objections to crypto-based ETNs, allowing for more institutional involvement in crypto, while the Bank of Japan may lift the benchmark interest rate above zero this month. Despite Asian stocks dropping, the consensus is that any bitcoin dip is likely to be short-lived due to the supply-demand imbalance created by recent strong inflows into U.S.-listed spot ETFs and the impending reward halving.
The leading cryptocurrency, Bitcoin, has broken new ground by topping $71,000 for the first time, with ether also reaching a record high by surpassing $4,000. This surge in value is directly linked to the approval of spot bitcoin exchange-traded funds in the U.S. Both the London Stock Exchange’s acceptance of bitcoin and ether exchange-traded notes and the FCA's removal of obstacles to crypto-based ETNs signal a shift towards greater institutional involvement in cryptocurrency. The Bank of Japan's possible move to raise the benchmark interest rate above zero is being closely watched but does not overshadow the optimistic outlook for bitcoin, given the strong inflows into U.S.-listed spot ETFs and the upcoming reward halving which are expected to outweigh any potential market downturns.
The rally in cryptocurrency has been attributed to various factors such as illiquid Asian market conditions and a series of positive news, all of which have contributed to the market's bullish mood. The potential opening up of new avenues for institutional investment in crypto with the removal of FCA objections is a promising development, while analysts are keeping a close eye on the Bank of Japan’s potential benchmark interest rate adjustment. Despite a recent drop in Asian stocks, the prevailing sentiment is that any minor fluctuations in the cryptocurrency market will likely be temporary, given the strong inflows into U.S.-listed spot ETFs and the imminent reward halving, which are expected to sustain the upward trend.
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