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HomePlatformsDigital Product DevelopmentBitcoin hits new record high, while ether surpasses $4,000

Bitcoin hits new record high, while ether surpasses $4,000

Bitcoin continued its recent upward trajectory, reaching another record high of $72,750.16, with a 3% increase to $72,022.16 at the time of reporting, according to Coin Metrics. Last week saw bitcoin setting new records amid volatile trading, a trend that continued over the weekend.

The surge in the price of bitcoin has been fueled by significant inflows into U.S. spot bitcoin ETFs, totaling $2.7 billion last week and reaching $10.3 billion year-to-date. However, increased leverage in the crypto market has resulted in substantial price swings, reminiscent of levels seen almost a year ago, with bitcoin open interest reaching all-time highs.

Meanwhile, ether also saw gains, surpassing $4,000 for the first time since December 2021, rising by 3% to $4,034.00. The uptrend in ether prices has been partially attributed to the performance of bitcoin. Additionally, investors are anticipating the Ethereum network’s upcoming major technical upgrade, known as “Dencun,” this week.

Citi analyst Alex Saunders highlighted that the market dynamics around the Dencun upgrade could differ from previous instances, given other significant factors such as the influx into bitcoin ETFs, the approaching Bitcoin halving, and potential approval of spot ether ETFs trading by the Securities and Exchange Commission in May.

In the stock market, companies linked to the price of bitcoin experienced mixed performance. Crypto exchange Coinbase closed nearly flat, while Bitcoin proxy Microstrategy rose by 4% following the purchase of approximately 12,000 bitcoins for over $821 million in cash. Conversely, mining companies like Marathon Digital, CleanSpark, Iris Energy, and Riot Platforms saw declines, reversing their earlier gains as investors reacted to the upcoming Bitcoin halving event.

In regulatory news, the U.K.’s Financial Conduct Authority announced its approval for exchanges to list cryptocurrency-linked exchange-traded products (ETPs) for the first time. This decision comes after the introduction of spot bitcoin ETFs trading in the U.S. The move is expected to attract increased institutional investment into cryptocurrencies, potentially driving prices higher as more serious money enters the market.