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Bitcoin hits a new all-time high, surpassing $71,000

 

On
Monday, Bitcoin reached a new milestone, exceeding $71,000, driven by
increasing demand for cryptocurrency and positive sentiment regarding
potential interest rate cuts by the Federal Reserve this year. 

Bloomberg
data indicates that Bitcoin reached its highest point at $71,432 during
afternoon Asian trading, marking a nearly 70 percent surge in value for
the year. 

The
rally was further fueled by the announcement from the Financial Conduct
Authority in Britain, stating its approval for the development of
crypto-related securities.

This
surge follows the approval by US authorities earlier this year for
exchange-traded funds linked to the spot price of bitcoin. The decision
has encouraged certain mainstream investors to diversify their
portfolios by incorporating the cryptocurrency. 

Institutional
investors, traditionally cautious due to the volatile nature of
cryptocurrencies, are increasingly engaging in long-term investments. 

This
shift in strategy is seen as a contributing factor to the current surge
in Bitcoin. Notably, during the week ending March 1, net inflows to the
leading Top 10 U.S. spot Bitcoin funds amounted to $2.2 billion, with a
substantial portion, over $2 billion, directed towards BlackRock’s
iShares Bitcoin Trust (IBIT). Experts view this trend as a significant
endorsement for the cryptocurrency market.

Bill
Ackman, a prominent hedge fund manager, has redirected his attention
towards Bitcoin and outlined a scenario in which the value of the
world’s largest cryptocurrency could experience a surge surpassing
conventional predictions.

Taking to his verified X Account, this is what he had to say:  

Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues. Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses. Maybe I should buy some Bitcoin.

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