#WRITE2earn #BITCOIN HITS NEW HIGHS: UNDERSTANDING THE FACTORS BEHIND THE SURGE #BullMarketđ #BullRunđ #BitcoinSurge
Last week marked a historic milestone as the leading cryptocurrency soared past the $70,000 mark for the first time ever. Bitcoin (BTC) continued its upward trajectory, breaching $71,000 during Monday's Asian trading hours. This surge has been attributed to the recent approval of spot bitcoin exchange-traded funds (ETFs) in the United States, which has fueled investor confidence.
Notably, Ether (ETH) also reached a significant milestone by surpassing $4,000 on Monday.
The rally in cryptocurrency prices has led to an increase in the annualized three-month futures premium on major exchanges, such as Binance, surpassing 25%. This heightened premium is expected to attract cash and carry traders, thereby enhancing market liquidity.
According to the founders of LondonCryptoClub, multiple factors are contributing to this price surge. The acceptance of applications for bitcoin and ether exchange-traded notes (ETNs) by the London Stock Exchange, along with the prevailing illiquid market conditions in Asia, are cited as key drivers.
Furthermore, macroeconomic factors are playing a role, with the recent stabilization and downward trend in U.S. interest rates and the dollar acting as tailwinds for cryptocurrency markets. Short-term speculative traders attempting to predict market peaks and subsequently getting liquidated are also fueling upward momentum.
The Financial Conduct Authority of the United Kingdom has opened doors for institutional investors to create crypto asset-backed exchange-traded notes. Additionally, the London Stock Exchange has confirmed its plans to accept applications for bitcoin and ether ETNs in the second quarter of this year.
Despite a drop in Asian stocks, including Japan's Nikkei and Australia's ASX, Bitcoin continues to reach new peaks. Concerns regarding the Bank of Japan potentially raising benchmark interest rates above zero have been cited as a source of uncertainty for both traditional and cryptocurrency markets.
