Jakub Porzycki | Photo only | Getty Images
Bitcoin extended recent gains and climbed to another record earlier in the week.
According to Coin Metrics, the price of the flagship cryptocurrency was last up 3% at $72,022.16. Previously, it hit an all-time high of $72,750.16.
Last week, Bitcoin hit new records in volatile trading for the first time since 2021, before trading turned more subdued over the weekend.
Stock chart iconStock chart icon
Bitcoin hits another record, Ether rises to December 2021 peak
Inflows into US spot Bitcoin ETFs continue to determine the cryptocurrency’s price action. According to CoinShares, crypto investment products saw record inflows totaling $2.7 billion last week. This brings the year-to-date total to $10.3 billion, just below the record $10.6 billion for all of 2021.
At the same time, increased leverage in the crypto market has led to the largest price swings in almost a year, with funding rates at their highest since January 2021 and Bitcoin open interest at all-time highs.
In the meantime, ether has surpassed $4,000 for the first time since December 2021, boosted in part by Bitcoin. It was last up 3% at $4,034.00.
Investors this week also looked forward to the Ethereum network’s next major technology upgrade, called “Dencun.” In the past, the crypto asset rallied until the day of the upgrade and then saw traders selling on this event.
Citi analyst Alex Saunders noted in a note on Monday that price action for Dencun could look different given the strength of other key crypto catalysts at the moment – particularly inflows into Bitcoin ETFs, the upcoming Bitcoin halving and the possibility of that this is the case The Securities and Exchange Commission could approve trading of spot Ether ETFs in the US in May.
Companies whose performance is tied to the price of Bitcoin were mixed on Monday. Crypto exchange Coinbase Advanced gave back earlier gains but closed just flat as the broader tech rally cooled. Bitcoin proxy MicrostrategyAccording to a report, the value increased by 4% after the company purchased around 12,000 more Bitcoins for more than $821 million in cash.
Miners fell. Marathon Digital lost 12%, CleanSpark decreased by 16% Iris energy lost 5% and Riot Platforms slipped 4%. These were some of the biggest stock market gains in February, but have fallen in March as investors digest the upcoming Bitcoin halving, which will cut mining companies' revenue.
New UK Crypto Trading Products
Elsewhere, Britain's Financial Conduct Authority said on Monday it would allow exchanges to list cryptocurrency-pegged exchange-traded products for the first time – two months after spot Bitcoin ETFs began trading in the US
Specifically, the FCA said it has no objection to applications from recognized investment exchanges to create a UK-listed market segment for cryptocurrency-backed exchange traded notes (ETNs). The London Stock Exchange announced that it will begin accepting applications for listing Bitcoin and Ether ETNs starting in the second quarter of this year.
Unlike an ETF, which is a fund that holds assets, an ETN is an unsecured debt security issued by a bank. It is typically tied to a market index or other benchmark. An ETN promises to pay out the full value of the index, minus management fees, upon maturity.
Bitcoin bulls note that this will lead to increased institutional investment in Bitcoin and other cryptocurrencies. They say this will in turn have a positive impact on the price as more money flows into the market.