Bitcoin surges: price nears $73,000 in unprecedented record high

Bitcoin has hit a fresh high at nearly $73,000 (£57,000), while the UK’s financial watchdog approved the trade of securities linked to cryptocurrencies.

The cryptocurrency soared to a new record of $72,720 on Monday evening, beating its previous high of around $69,000 from November 2021.

UK regulatory shift boosts Bitcoin’s surge

Bitcoin’s recent price surge comes after the UK’s financial watchdog announced on Monday that it wouldn’t oppose the launch of UK-based trading sections for exchange-traded notes backed by crypto assets. Essentially, these are financial products you can trade like stocks.

In an official statement, the Financial Conduct Authority expressed its intent to forbid the sale of cETNs to retail investors, including the general public. The FCA continually emphasizes the high-risk nature and largely unregulated status of crypto assets, issuing a warning that investors should be mentally and financially prepared for a potential total loss of their invested capital.

This year, Bitcoin’s climb was assisted by the US financial regulator’s acceptance of exchange-traded funds. These are groups of assets that can be traded like shares, following the price of the cryptocurrency.

In January, Gary Gensler, the head of the Securities and Exchange Commission, voiced doubts about Bitcoin. Despite its approval, he labeled it as a “risky, unstable asset” often associated with illegal activities like ransomware and financing terrorism.

Bitcoin’s halving anticipated to bolster value

A forthcoming “halving” of bitcoin, which cuts down the quantity of new bitcoin produced, is set to bolster the currency’s value due to reduced supply.”

Neil Wilson, the top expert at the brokerage firm Finalto, believes that the FCA’s latest decision is promising for the crypto market. He shared that sudden, sharp increases in prices usually bring about a significant drop, but with Bitcoin, this isn’t certain anymore.

He further elaborated on the topic, stating that the consideration lies in the amount of spare cash available that can be potentially allocated to Bitcoin.

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