Bitcoin hit a fresh record above $71,000 on Monday as demand for the cryptocurrency picks up amid optimism that the Federal Reserve will cut interest rates this year.
The unit hit a peak of $71,432 in afternoon Asian business, according to Bloomberg data, meaning it has advanced almost 70 percent this year.
The rally was helped by news that Britain's Financial Conduct Authority had said it would allow the creation of crypto-related securities.
That comes after US authorities gave the green light this year to exchange-traded funds pegged to bitcoin's spot price, persuading some mainstream investors to take the plunge by adding the unit to their portfolio.
As per Forbes, Bitcoin's price soared to an all-time high, surpassing the $71,000 mark and peaking at $71,180 during early European trading.
The latest reflection showed sustained interest and optimism in bitcoin, which was boosted by the inauguration of new spot bitcoin exchange-traded funds that have facilitated greater investor access to the digital asset. The appeal of potentially lower Federal Reserve rates also contributed to this bullish sentiment.
The initiation of the spot bitcoin ETFs in January set off a substantial influx of capital into bitcoin. These ETFs, which offer direct exposure to bitcoin, have attracted nearly $8 billion from investors within two months, showing the widespread demand for the new asset class among individual and institutional investors.
Market analysts point to a combination of excitement over the ETFs and macroeconomic factors as this fuels bitcoin's record-breaking price levels. Some of this euphoria can be attributed to the upcoming bitcoin "halving," a scheduled event in bitcoin's code that reduces the daily production of new coins, which will further tighten the supply leading to a potential supply crunch. The halving, which occurs approximately every four years or 210,000 blocks, has historically led to significant price appreciation for bitcoin, as seen in previous cycles.
