Photo by Thought Catalog
Bitcoin, the world’s leading cryptocurrency, has reached another new milestone, surging past the $71,000 mark on March 11. This latest surge follows a series of developments in the cryptocurrency market, including regulatory changes and increased institutional interest.
Here are five things to know.
The UK’s Financial Conduct Authority recently announced that it would allow institutional investors to create crypto asset-backed exchange-traded notes (ETNs). This move has been seen as a major step towards greater institutional involvement in the crypto market and has contributed to Bitcoin’s upward trajectory, CoinDesk reported.
Investment firms like Grayscale, BlackRock, and Fidelity have been pouring billions of dollars into Bitcoin, leading to the emergence of so-called “Bitcoin whales,” BBC reports. These institutional players have been driving up demand for the digital asset and contributing to its price appreciation.
Bitcoin’s latest rally is also attributed to broader macroeconomic factors, including the Bank of Japan’s potential decision to lift the benchmark interest rate above zero. Additionally, the recent approval of spot bitcoin exchange-traded funds (ETFs) in the U.S. has sparked optimism among investors.
The rally in Bitcoin has lifted the annualized three-month futures premium on major exchanges, indicating strong demand from traders. This elevated premium has attracted cash and carry traders, further boosting market liquidity and contributing to Bitcoin’s upward momentum.
Cathie Wood, CEO of ARK Investment Management, dismisses comparisons between the current market and the late ’90s bubble. She argues that today’s technologies are more advanced and cost-effective after two decades of development. While she acknowledges the potential for a correction in the semiconductor sector, she remains optimistic about its long-term growth, MarketScreener reported.
Billionaire investor Charlie Munger has never been a fan of bitcoin or cryptocurrency.
In 2023, the 99-year-old vice chairman of Berkshire Hathaway criticized virtual currency, labeling it as “worthless.” He expressed disdain for cryptocurrency, referring to it as “crypto ‘crappo'” and “crypto s—.” He emphasized his disbelief in the value of such digital assets, describing it as “ridiculous” and “crazy, stupid gambling” for anyone to invest in them, as reported by CNBC. Munger is a veteran stock investor with a net worth of $2.3 billion.
Photo by Thought Catalog: https://www.pexels.com/photo/woman-holding-two-coins-2228570/
