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.