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Bitcoin’s Record High Above $72K Signals Strong Crypto Market Rebound

Shalini Nagarajan
Last updated: | 1 min read
Bitcoin High
Source: Midjourney

Bitcoin hit an all-time high on Monday, contributing to the rapid rebound of the cryptocurrency market. The largest crypto by market cap surged to as much as $72,710 late Monday. Meanwhile, Ether rose 4.5% to $4,038.

“Extreme greed remains the driver of the crypto market, but major coins are getting the main influx of money,” said Alex Kuptsikevich, senior market analyst at FxPro.

Rising trading activity has breathed new life into BNB (Binance Coin), making it jump over 4% in a single day. BNB surpassed the growth rates of both Ethereum and Bitcoin by surging 25% over the past week.

Despite this strong performance, BNB, like ETH, remains about 15% below its record highs from late 2021.

Bitcoin’s price surge is attributed to multiple factors. Firstly, the upcoming Bitcoin Halving event in April is fueling investor optimism. The launch of Spot Bitcoin ETFs in the US is also bolstering demand for the coin.

Moreover, the UK’s Financial Conduct Authority (FCA) opening doors for some exchanges to list crypto-linked exchange-traded notes for the first time is further contributing to positive momentum.

New Record High Amid UK Regulatory Developments

Mikkel Morch, founder of digital asset investment fund ARK36, said Bitcoin’s recent price rise is strongly linked to the UK FCA’s move. UK’s legislative alignment with regions like Europe, the Middle East, and the US has instilled investor confidence, he suggested.

“This significant regulatory shift not only reflects London’s intention to remain a key player in the financial world but also signals a broader acceptance and institutionalization of cryptocurrencies,” he said.

“The FCA’s move is particularly timely, as the cryptocurrency market anticipates the upcoming Bitcoin halving event, a fundamental mechanism that historically has had a bullish impact on Bitcoin’s price due to the reduced supply of new coins entering the market.”

BlackRock’s iShares Bitcoin Trust Surpasses MicroStrategy’s BTC Holdings

Further, BlackRock’s Spot Bitcoin ETF holdings exceeding those of MicroStrategy marks a significant milestone. BlackRock’s iShares Bitcoin Trust (IBIT) acquired nearly 200,000 Bitcoin in just two months. This makes it one of the largest BTC holders globally, surpassing MicroStrategy’s BTC holdings of 193,000.

Separately on Monday, MicroStrategy’s Michael Saylor sold $800m in convertible senior notes to further boost the company’s already substantial Bitcoin reserves. Saylor recently said people should buy and “HODL” their coins for the long term.