Key Takeaways
- 💰 Bitcoin hit a new all-time high of $72,662
- 📈 Bitcoin rose by 4.8% to reach $71,677 in European trading
- 🌐 The world’s most valuable cryptocurrency is benefiting from new cash flows into spot bitcoin exchange-traded funds
- ⛏ Supply of bitcoin will tighten in April with the halving event
- 🇬🇧 UK regulator allows recognised investment exchanges to launch crypto-backed exchange-traded notes for professional investors
- 💡 Asset managers hold the biggest bullish position in bitcoin futures on record
- 💸 Flows of capital into U.S. spot bitcoin exchange-traded funds reached almost $2 billion
- 💸 ETF inflows reached a record high last week at $2.24 billion
- 💸 Ether rose to $4,000 with speculation on U.S. regulators approving spot ether ETFs
- 🏦 The Bank of Japan might be considering normalizing interest rates as early as its next meeting
- 📊 Revised GDP numbers show Japan’s economy growing by 0.4% in the fourth quarter of last year
- 📈 Coinbase stock surpassed its direct listing price for the first time since December 2021
- 🛠️ Coinbase faced a technical glitch causing some users to see zero-dollar balances
- 📉 Both Coinbase and Bitcoin have been performing well due to the wider bull market in the industry
Unprecedented Growth in Bitcoin and Ether
Bitcoin and Ether have experienced significant growth in recent weeks, with Bitcoin hitting a new all-time high above $72,000 and Ether reaching $4,000. The surge in Bitcoin’s value can be attributed to new cash flows into spot bitcoin exchange-traded funds, as well as the anticipation of the upcoming halving event in April which will further tighten the supply of Bitcoin. On the other hand, Ether’s rise is fueled by speculation that U.S. regulators may approve spot ether ETFs, driving up its price.
Regulatory Developments in the UK and Japan
The UK’s financial watchdog has permitted recognised investment exchanges to launch crypto-backed exchange-traded notes for professional investors, signalling a growing acceptance of cryptocurrencies in traditional financial markets. Meanwhile, the Bank of Japan is considering normalizing interest rates as early as its next meeting, reflecting a potential shift in monetary policy that could impact the country’s economy.
Strong Performance of Investment Vehicles
Asset managers have shown a strong bullish position in Bitcoin futures, reaching a record high. Additionally, the influx of capital into U.S. spot bitcoin exchange-traded funds has reached almost $2 billion, indicating increasing interest from institutional investors in the cryptocurrency market. ETF inflows also hit a record high last week, underscoring the growing appeal of digital assets as part of diversified investment portfolios.
Challenges Faced by Coinbase
Coinbase, a leading cryptocurrency exchange, faced a technical glitch that caused some users to see zero-dollar balances. Despite this setback, Coinbase’s stock price surpassed its direct listing price for the first time since December 2021, reflecting the overall positive performance of the company amid the wider bull market in the industry.