Bitcoin reached a new all-time high above $71,000, driven by increased demand and optimism about potential interest rate cuts by the Federal Reserve.
According to report, this surge follows approval from US authorities for exchange-traded funds tied to bitcoin’s value. The Financial Conduct Authority in Britain also announced support for crypto-related securities.
The rise reflects growing interest in bitcoin, especially with the introduction of spot bitcoin exchange-traded funds, which allow easier investor access.
These funds have attracted billions of dollars in just a couple of months, indicating strong demand from both individual and institutional investors.
Analysts suggest that excitement around these ETFs, combined with broader economic factors and the upcoming bitcoin “halving” event, are contributing to the record-breaking prices.
The halving event, which occurs roughly every four years, reduces the rate of new bitcoin production and historically leads to significant price increases.