Bitcoin Jumps Over $71K as UK's FCA Lets Institutional Investors Create Crypto ETNs

[Blocker]

https://www.coindesk.com/business/20...its-new-highs/

Bitcoin (BTC) crossed $71,000 for the first time ever during the Asian trading hours on Monday.

The leading cryptocurrency has been steadily rising since the approval of the spot bitcoin exchange-traded funds in the U.S. The token crossed $70,000 for the first time ever last week. Ether (ETH) also crossed $4,000 on Monday. Meanwhile, the broader CoinDesk 20 index (CD20) jumped nearly 1%.

The rally has lifted the annualized three-month futures premium on major exchanges, including Binance, to above 25%. The elevated premium could attract cash and carry traders, boosting overall market liquidity.

Founders of newsletter service LondonCryptoClub attributed the price rise to the London Stock Exchange’s decision to accept applications for bitcoin and ether exchange-traded notes (ETNs) and the illiquid Asian market conditions.

"It’s a confluence of factors. Asia is buying in an illiquid market coupled with continued positive news, with the London Stock Exchange just announcing it will take applications for BTC and ETH ETNs. The powerful demand-supply dynamic from the BTC ETFs continues unabated," founders said.

"Meanwhile, the macro, which had been a headwind, has now become a tailwind as U.S. rates and the dollar appear to have topped out and are turning lower. Additionally, as we approach key resistance levels, short-term speculative traders trying to call a top, short into these key levels and then get liquidated, causing a pseudo negative gamma effect which propels us higher," founders added.

The U.K.'s Financial Conduct Authority on Monday opened the doors for institutional investors to create crypto asset-backed exchange-traded notes. The London Stock Exchange later confirmed that it would accept applications for bitcoin and ether ETNs in the second quarter of this year.
Asian stocks dropped

Bitcoin’s move to new peaks came even as Asian equity indices slipped, with Japan’s Nikkei and Australia’s ASX falling 2% after a Reuters report said the Bank of Japan could lift the benchmark interest rate above zero this month.

Some analysts have long warned that BOJ is a major source of uncertainty for both traditional and crypto markets.

That said, the consensus is that any bitcoin dip is likely to be short-lived, thanks to the supply-demand imbalance created by the recent strong inflows into the U.S.-listed spot ETFs and the impending reward halving.

[tomted]

Here we are months later and Bitcoin is now sitting just under $100K. We've got a pro-crypto president coming in. Multiple crypto ETFs exist, along with several pending applications for new ones. They want institutions to be able to buy in with big money and feel secure about it.

Don't get me wrong, I joined the fad and bought close to $40K worth of crypto. Then lost about $20K of it during the 2022 crypto crash (mostly due to bankruptcies). It stung, but I learned from it. I'm still in the crypto game, but I keep questioning how it's going to end.

I heard Charlie Munger say a while back, "It's like if some folks are trading turds. You don't want to feel left out, so you join in trading turds as well." Who knows, maybe he didn't know what he was talking about when it came to modern age crypto since he was just an old fashioned investor like Warren Buffett. Or, perhaps he did, and sensed a bad outcome for this limited quantity Bitcoin down the road.

[anon]

It's a shame crypto ended up becoming a game of speculation and a few elites controlling large parts of it, as it had the potential to be better. Although for those needing to make anonymous payments or avoid ridiculous restrictions and taxes in some countries, it has mostly filled a void.

Also, if cryptocurrency is trading turds, I'd love to know that NFTs are...

[Blocker]

IMO the only crypto worth it is BTC , its was the origin of crypocurrencies and no one in theory can manipulate supply or crack it. Also very important , the supply is limited and programmed. You have the halving events wich make its harder to mine it.

I think in terms anonymous payment method it fails,

For me I think I considered more BTC as a store of value, just like gold or silver than anything else.

[anon]

For me I think I considered more BTC as a store of value, just like gold or silver than anything else.

Gold and silver are one step above fiat currency and two above crypto as they have intrinsic value. With that said, BTC can be stronger and more stable than many fiat currencies (including my own country's ) which I believe is what you're referring to.