Bitcoin Breaks $72K Ether After two record-breaking most recent highs last week, the cost of Bitcoin (BTC) leaped to over $72,000 this morning, yet another new high for the market. In the meantime, Ether, a digital currency climbing steadily above $4,000 on Wednesday, had optimism about decreased fees following the highly-anticipated Dencun upgrade for the Ethereum network, which would ultimately benefit the improvement of the network.
Federal Reserve Chairman Jerome Powell clearly stated that there is no current plancreating digital central bank money (CBDC) regarding the U.S. dollar at the moment. Two SEC commissioners seem to have expressed disappointment with the current crypto regulation scenario in the U.S.
Bitcoin Hits a New All-Time High on the Back of ETFs
The recent price spikes in bitcoin, up to several all-time highs, have been linked to the launch of spot bitcoin ETFs in the United States and the looming bitcoin halving event. It is the leading cryptocurrency by market cap, with sharp declines after each top. However, it eventually recovered some of its losses. The news about the U.K. regulator’s relaxed stance to allow cryptocurrency exchange-traded notes (ETNs) in the country may result in Bitcoin striding beyond $72,000 to Ether on Monday.
The Financial Conduct Authority (FCA) will not object to the proposals of Recognised Investment Exchanges (RIEs) to set a segment of the London Stock Exchange for crypto-backed Exchange Traded Notes (cETNs) in the U.K. The London Stock Exchange reveals that only professional investors, such as investment firms, credit institutions, and other financial entities that are authorized or licensed, will have access to these products.
Blackrock’s Bitcoin ETF and MicroStrategy are Big Bitcoin Buyers
Recently, Blackrock’s iShares Bitcoin Trust (IBIT) briefly overtook MicroStrategy’s Bitcoin Breaks $72K Ether holdings, thereby becoming one of the top Bitcoin trading platforms during the past months.23 Even so, MicroStrategy successfully increased their current bitcoin holdings to 205,000 by acquiring an additional 12,000 bitcoins on Monday.4
BitMEX Research reported that the nine new ETFs now have a total market cap that exceeds Grayscale Bitcoin Trust’s (GBTC) market cap.5 GBTC has dropped almost $10 billion since it became an exchange-traded fund. Among the ten available spot bitcoin ETFs, Grayscale seems to have the highest price, featuring a 1.5 percent premium.6
Bitcoin Price Powering Gains For Some Crypto-Related Stocks
The investment that MicroStrategy made by buying Bitcoin is the happiest they have been. In the early hours of Monday, the stocks of MicroStrategy surged 16% to the price of $1,650 plus. The stock has been up around 140% since 2024 and has gone by more than 600% in the last year. Michael Saylor, the Executive Chairman of the Operating Organization of MicroStrategy, claims that MicroStrategy’s shares are an excellent choice for investors who want to expose themselves to Bitcoin.
How can you stay secure if deciding to buy Bitcoin at its historic peak? It is an excellent way to hedge against the possible drawbacks, but it can still get a boost if Bitcoin flares up. “There’s $12-$13 billion that we have in the balance sheet of bitcoin. MicroStrategy has already sold $800 million worth of debt,” Saylor reported to CNBC on Monday. If the Bitcoin maximalist who loves Bitcoin Breaks $72K Ether doesn’t want to let it go, keep it. The ETFs take 25 basis points from you while the company is accreting. Unlike that, we are offering you a tax-friendly tax-friendly tax-friendly yield for your shares.
Another company that has also been a winner of Bitcoin’s rise is Coinbase (COIN). This crypto exchange stock has grown by 15% within the last five days and is up by 70% this year, even though the issues of highly high trading volumes in the past two weeks have risen.
SEC Commissioners Criticize Agency’s Crypto Stance
Some commissioners of the SEC disapproved of the agency’s decision to take charges against Shapeshift, a former platform for trading digital assets. Hester Peirce and Mark Uyeda, the SEC commissioners, raised questions about the status of these, er they are seuandsounditiescitiesithstanding tha ShaeShift agreed to pay $275,000 for sudly facilitating the trades of obscure digital assets regulated as securities. 8 They expressed that crypto companies find it hard to discover whether the regulations have been fulfilled due to the lack of clarity, which may hinder innovation.
Arguing that “cases of this kind do not protect investors; they threaten innovators and entrepreneurs. Peirce and Uyeda pointed out their positions. We disagree respectfully.”9 Coinbase and Kraken are the companies that have been sued by the SEC for managing unregistered securities exchanges, among others. The commissioners’ statement is similar to the frustrations they faced.
Fed Chair Powell Says No Reason to Worry About CBDC
Federal Reserve Chairman Jerome Powell has introduced the concept of a U.S. CBDC in his speech to Congress last week. As Mr. Powell said, “Positive change is likely to occur in the banking sector itself, either through or by associating the digital crypto initiative within the present system of banks.
Powell intended to dispel any doubts over CBDC that might creep up in people’s minds, such as cases where the Fed would compete with commercial banks for loans or carry out invasive individual accounts under an all-seeing eye. Privacy issues and the potential economic repercussions of a central bank creating a digital currency are still up for discussion. His sayings show up at the same time that certain politicians are trying to prevent the Fed from developing CBDC without getting Congress’s permission to do so.
What to Expect from Ether Network Upgrade
I look forward to this week’s Deneb-Cancun (or Dencun) network stiffness. Bitcoin soared to $72,000, and Ether (ETH) has been worth more than $4000 for the first time since December 2021. As per Monday’s gains of almost 4% in Ether, it is over 70% up so far this year. Fidelity Digital Assets introduced layer two protocols. The enhancement will help cut the costs of the Ethereum blockchain, too.
FAQs
How are Blackrock and MicroStrategy influencing Bitcoin's market?
Blackrock's Bitcoin ETF and MicroStrategy's massive Bitcoin purchases, including an additional 12,000 BTC, are significantly impacting Bitcoin's price and market dynamics.
What did SEC Commissioners criticize about the agency's stance on crypto?
SEC Commissioners Hester Peirce and Mark Uyeda criticized the lack of clarity in crypto regulations, which they believe hinders innovation and threatens entrepreneurs.
What is the significance of the Dencun upgrade for Ether?
The Dencun upgrade for Ethereum promises to reduce transaction fees, further boosting Ether’s value, which recently surpassed $4,000.
What was Jerome Powell's stance on the U.S. central bank digital currency (CBDC)?
Jerome Powell dismissed concerns about a U.S. CBDC, emphasizing that there are no current plans to compete with commercial banks or invade privacy through digital dollar initiatives.
