Bitcoin surges past $72k for first time ever as cryptocurrencies rally
TLDR
- Bitcoin surged past $72,000, marking a 70% increase this year fueled by strong inflows to US ETFs.
- Ether hit $4,000, while the CoinDesk 20 index rose 1%, indicating a bullish market sentiment.
- Bitcoin's rally led to a futures premium over 25%, attracting traders and boosting market liquidity.
Bitcoin topped $72,000 for the first time, advancing for a sixth straight day and taking gains this year to almost 70% on the back of massive inflows into US exchange-traded funds. The original cryptocurrency rose as much as 4% to $72,234 on Monday.
Last week, Bitcoin broke through the $70,000 barrier for the first time, reflecting the sustained bullish momentum. Additionally, Ether (ETH) also achieved a milestone by surpassing $4,000 on Monday. The broader CoinDesk 20 index (CD20) experienced a notable uptick of nearly 1% amidst the overall market excitement.
The rally in Bitcoin's price has propelled the annualized three-month futures premium on major exchanges, including Binance, to exceed 25%. This heightened premium may attract cash and carry traders, thereby enhancing overall market liquidity and further fueling the upward trajectory of cryptocurrencies.
Key Takeaways
Bitcoin's recent surge can be attributed to a combination of factors. Increased buying activity in Asia has contributed to a rise in demand within an illiquid market environment. Additionally, the influx of positive news, such as the announcement from the London Stock Exchange regarding the acceptance of applications for BTC and ETH Exchange-Traded Notes (ETNs), has bolstered investor confidence. Furthermore, the ongoing demand-supply dynamics stemming from the introduction of Bitcoin Exchange-Traded Funds (ETFs) continue to exert a significant influence on the market. The combination of these factors has fueled the latest surge in Bitcoin's price, reflecting the growing acceptance and adoption of digital assets in mainstream finance.
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