|
|
According to a Reuters report on March 5, the price of Bitcoin soared to a historic high, driven by investors pouring large sums of money into cryptocurrencies traded on the US spot exchange and the prospect of a global decline in interest rates. The price of the world's largest cryptocurrency reached a peak of $69,202, surpassing the previous all-time high of $68,999.99 in November 2021. Since the approval of 11 Bitcoin spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission at the end of January this year, investor interest has surged. Subsequently, the price of Bitcoin dropped to $66,892.
Nathan McCauley, CEO and co-founder of cryptocurrency platform Anchorage Digital, said, "The record-high Bitcoin price marks a turning point for cryptocurrencies. Traditional institutions, which once stood on the sidelines, are now fully engaged and are a major driving force behind the cryptocurrency bull market."
Since October of last year, the price of Bitcoin has surged nearly 160%, with a 44% increase in February alone, in stark contrast to 2022 when the cryptocurrency market experienced an 18-month winter period plagued by a series of high-profile business bankruptcies and scandals. Data from the London Stock Exchange Group (LSEG) shows that in the week ending March 1, the net inflow of funds into the top 10 Bitcoin spot funds in the United States reached $2.17 billion, with more than half going to BlackRock's Grayscale Bitcoin Trust.
In addition to demand from a broader range of investors, Bitcoin and other cryptocurrencies are boosted by the prospect of a Federal Reserve interest rate cut. A Federal Reserve interest rate cut often prompts investors to shift funds to higher-yielding or more volatile assets. |
|
Post time 16-3-2024 07:36:11