London, UK – Bitcoin has surged to a new all-time high, surpassing $70,000, following an announcement by the UK financial regulator permitting the trading of crypto-backed securities. The cryptocurrency hit a peak of $71,588 on Monday morning, outpacing its previous record set in November 2021.
The UK Financial Conduct Authority revealed that it would not object to investment exchanges establishing a UK-listed market segment for cryptoasset-backed exchange traded notes [cETNs]. Although the FCA is allowing this market segment, it emphasized that these products are not approved for retail investors or the general public due to the high-risk nature of crypto-assets. The FCA continues to caution investors about the unregulated and volatile nature of cryptocurrencies.
In addition to the UK’s regulatory shift, Bitcoin has also benefited from recent approval by the US financial regulator for exchange-traded funds [ETFs] tracking the cryptocurrency’s price. Despite this approval, Gary Gensler, chair of the Securities and Exchange Commission, has expressed skepticism towards Bitcoin, referring to it as a “speculative, volatile asset” used for illicit activities like ransomware and terrorist financing.
Looking ahead, the upcoming “halving” of Bitcoin is expected to further support the cryptocurrency by reducing new supply and potentially boosting the price. Neil Wilson, chief analyst at the brokerage Finalto, views the FCA’s decision as a positive signal for the cryptocurrency market. However, he cautions that while parabolic market movements typically end in significant pullbacks, Bitcoin’s future remains uncertain.
Overall, the cryptocurrency market’s landscape continues to evolve with regulatory changes impacting prices and investor sentiment. As Bitcoin climbs to new heights, the industry faces ongoing scrutiny and challenges regarding its legitimacy and potential risks. Investors are advised to exercise caution and fully understand the complexities and risks associated with investing in cryptocurrencies.