Bitcoin rises to another record, ether breaks through $4,000

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According to Coin Metrics, the flagship cryptocurrency's price increased by 4% to $72,492.42 last time. It hit an all-time high of $72,750.16 earlier.

For the first time since 2021, bitcoin saw record-breaking volatility last week before more muted trading over the weekend.

Icon for a stock chartIcon of a stock chart

Coin Metrics for Bitcoin/USD: BTC.CM=:Exchange + ACCESS QUOTE INFORMATION

72,652.92

+3,183.12 (plus 4.58%)

Final | 3:06 p.m. EDT

1D 5D

1M, 3M, and 6M

YTD 1Y 5Y ALL

Bitcoin reaches a new high, and ether reaches a record high in December 2021.

The movement of the price of bitcoin is still being driven by inflows into U.S. spot ETFs. According to CoinShares, there were $2.7 billion in record inflows into cryptocurrency investment products last week. With that, the total for the year to far was $10.3 billion, barely missing the record of $10.6 billion in 2021 as a whole.

Simultaneously, the cryptocurrency market's increased leverage has caused the largest price fluctuations in almost a year, with funding rates reaching their highest points since January 2021 and bitcoin open interest reaching record highs.

Open interest in bitcoin from January 2021 to March 2024

The line graph displays the open interest in bitcoin from January 2021 to March 2024.

2021–2022–2023–2024

8B, 10B, 12B, 14B, 16B, and 18B

Mar. 11, 2024, 18.3B

Meanwhile, ether

broke $4,000, helped in part by bitcoin, for the first time since December 2021. It was trading at $4,063.43, up 4%.

Additionally, investors were anticipating "Dencun," the Ethereum network's upcoming major technological advancement.

This week, investors were also anticipating "Dencun," the Ethereum network's upcoming major technological advancement. In the past, traders have sold the cryptocurrency asset on the day of the upgrade after it had surged the day before.

Given the strength of other significant crypto catalysts currently in play, such as the inflows into bitcoin ETFs, the impending Bitcoin halving, and the possibility that the Securities and Exchange Commission will approve trading of spot ether ETFs in the U.S. in May, Citi analyst Alex Saunders noted in a note on Monday that price action for Dencun could look different.

Businesses whose success is dependent on the price of bitcoin saw an increase on Monday as the digital currency reached yet another all-time high. Cryptocurrency platform Coinbase 3.5% progress was made. Bitcoin Microstrategy proxyincreased by 9% following the acquisition of an additional 12,000 bitcoins by the business for cash payments totaling more than $821 million, per a filing.

But there were mixed miners.CleanSpark dropped 4% and Marathon Digital lost 3.75%. In the meantime, Riot Platforms saw no change while Iris Energy saw a 2.6% increase. These were a few of the top performers on the stock market in February. With the exception of CleanSpark, one of the group's less expensive operators, all have decreased for March as investors process the impending Bitcoin halving event, which will result in a sharp reduction in mining businesses' revenue.

New crypto trading goods in the UK

In other news, two months after spot bitcoin ETFs started trading, the Financial Conduct Authority of the United Kingdom announced on Monday that it will permit exchanges to sell cryptocurrency-linked exchange-traded products for the first time.

The FCA specifically stated that it would not oppose to petitions from accredited investment exchanges to establish a market segment for cryptocurrency-backed exchange-traded notes, or ETNs, that is listed in the United Kingdom. According to the London Stock Exchange, applications for the entrance of ether ETNs and bitcoin will be accepted starting in the second quarter of this year.

An ETN is an unsecured debt security that is issued by a bank, as opposed to an ETF, which is a fund that holds assets. Usually, it is connected to a benchmark, such as an index of the market. An exchange-traded note (ETN) guarantees to payout the entire index value at maturity, less management costs.

Bulls in bitcoin predict that this will boost institutional investment in the digital currency.