Bitcoin surges to $72,000 amid trading accessibility and dollar weakness

Bitcoin surged to an unprecedented high surpassing $72,000, propelled by increased trading accessibility and a weakened US dollar, on Monday.

The world's leading cryptocurrency received additional momentum as market participants anticipated an upcoming industry event known to historically bolster Bitcoin's value. This surge marked a continuation of last week's remarkable performance, during which Bitcoin surpassed its previous peak from November 2021, reaching $68,991.

Bitcoin's ascent was further fueled by the announcement from the UK's Financial Conduct Authority, mirroring US regulators' decision to permit the issuance of crypto-related securities. Earlier this year, US authorities approved exchange-traded funds (ETFs) linked to Bitcoin's spot price, facilitating easier access for mainstream investors to incorporate the digital asset into their portfolios.

Also read: Bitcoin price retraces after climbing to $70K peak. Details here

“This remarkable surge is largely attributed to the escalating institutional interest in the crypto space. The advent of Bitcoin ETFs has revolutionized the landscape, enabling traditional investors to seamlessly access crypto through familiar channels. As the digital asset ecosystem continues to mature, we're witnessing a notable shift in investor sentiment towards these virtual digital assets. This milestone reinforces our steadfast belief in the transformative potential of blockchain technology and the considerable promise Bitcoin holds as a store of value and a hedge against uncertainty,” said Sumit Gupta, Co-founder, CoinDCX.

Investors who invested into the Bitcoin market is presently reaping profitable returns, given that the current price exceeds all historical levels. Nevertheless, it is is important to note that past performance does not assure future outcomes, emphasizing the necessity for cautious risk evaluation in investment deliberations.

“The growing acceptance of Bitcoin across institutions is acting as a major catalyst for price surge of the token. Investors are looking at this as a move towards greater credibility for the asset. For example, today the London Stock Exchange announced that they would accept Bitcoin and Ethereum Exchange-Traded Notes (ETNs) this year. There is greater liquidity in the market with Tether’s $2 billion dollar USDT freshly infused, indicating the increased demand for Bitcoin among ETFs. The ecosystem is bracing itself for new highs and trying to enter the market for better gains,” said Rajagopal Menon, VP, WazirX.

Why Bitcoin prices are rising?

The surge in Bitcoin was further fueled by the weakening dollar, driven by Friday's US jobs data, which reinforced expectations that the Federal Reserve would proceed with interest rate cuts starting in June.

Also read: CoinSwitch becomes first Indian cryptocurrency trading platform with 2 crore registered users, after Bitcoin surges

Currently, bitcoin is trading at a price that has surged by nearly 70% since January, when it was valued at approximately $43,000. However, it experienced a significant downturn to $15,000 in November 2022 following the collapse of the crypto exchange FTX.

Notably, bitcoin operates with a finite supply of units, with its creator Satoshi Nakamoto having capped the maximum number of bitcoins at 21 million. The authenticity of Nakamoto's identity is under scrutiny in an ongoing court case in London, which seeks to determine whether Australian computer scientist Craig Wright is indeed the mastermind behind bitcoin.

Wright asserts that he is Nakamoto, the individual responsible for the 2008 white paper that introduced bitcoin to the world. In response to these claims, the Crypto Open Patent Alliance (COPA), a non-profit organization established to preserve the patent-free nature of cryptocurrency technology, has initiated legal action against Wright.