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Bitcoin Breaks $72K, Ether Rises on Dencun Upgrade Hopes

Bitcoin Breaks $72K Ether: Following two all-time highs last week, Bitcoin’s (BTC) price surged beyond $72,000 this morning, marking yet another price milestone. Ether, meanwhile, rose consistently above $4,000 on Wednesday, on to optimism about reduced costs following the highly-anticipated Dencun upgrade for the Ethereum network, which would aid in improving transaction processing speeds at scale.

Federal Reserve Chairman Jerome Powell made it explicit that there are no immediate plans to develop a central bank digital currency (CBDC) for the U.S. dollar. Two SEC commissioners expressed dissatisfaction with the current state of crypto regulation in the U.S.

Bitcoin Hits a New All-Time High on the Back of ETFs

Bitcoin Hits a New All-Time High on the Back of ETFs

Recent gains to several all-time highs in bitcoin’s value have been attributed to the introduction of spot bitcoin ETFs in the U.S. and the impending halving event. The biggest cryptocurrency by market cap had steep drops after each peak, although it eventually recovered part of its losses. The excitement around the U.K. regulator’s easing position to permit cryptocurrency exchange-traded notes (ETNs) in the country may push Bitcoin Breaks $72K Ether beyond $72,000 on Monday.

Requests from Recognised Investment Exchanges (RIEs) to establish a U.K. listed market segment for crypto asset-backed Exchange Traded Notes (cETNs) will not be opposed by the Financial Conduct Authority (FCA). The London Stock Exchange stated that these products will only be accessible to professional investors, including investment firms and credit institutions authorized or licensed to operate in financial markets.

Also Read: Bitcoin Breaks $72K, Ether Rises on Dencun Upgrade Hopes

Blackrock’s Bitcoin ETF and MicroStrategy are Big Bitcoin Buyers

Last week, Blackrock’s iShares Bitcoin Trust (IBIT) briefly surpassed MicroStrategy’s (MSTR) Bitcoin Breaks $72K Ether holdings, solidifying its position as a leading Bitcoin trading platform during the last several months.23 Nevertheless. MicroStrategy raised their current bitcoin holdings to 205,000 after announcing the purchase of an additional 12,000 bitcoins on Monday.4

The total capitalization of the nine new ETFs is now more than Grayscale Bitcoin Trust (GBTC), as reported by BitMEX Research.5 GBTC has lost almost $10 billion since becoming an exchange-traded fund. Among the ten spot bitcoin ETFs available today, Grayscale’s offering stands out with much higher costs of 1.5 percent.6

Bitcoin Price Powering Gains For Some Crypto-Related Stocks

The gamble that MicroStrategy took by purchasing Bitcoin is yielding astonishing returns. By early afternoon on Monday, shares of MicroStrategy had risen 16% to a price of approximately $1,650. The stock has increased by about 140% since the beginning of 2024 and over 600% in the last year. Shares of MicroStrategy are a solid choice for investors looking to get exposure to bitcoin, says Michael Saylor, executive chairman of the business.

Bitcoin Price Powering Gains For Some Crypto-Related Stocks

“If you’re interested in Bitcoin and want to buy it at its all-time high, how can you protect yourself? From its potential downside while benefiting from its potential upside. “We have $12-$13 billion of bitcoin on the balance sheet. MicroStrategy sold $800 million in debt,” Saylor told CNBC on Monday. “If you’re a Bitcoin maximalist and love Bitcoin Breaks $72K Ether, you want it to hold forever. The ETFs charge you 25 basis points; MicroStrategy is accreting. We’re giving you a yield against your shares in a tax-efficient fashion.”

Another stock that has benefited from the rise of bitcoin is Coinbase (COIN). The cryptocurrency exchange stock has increased by over 15% in the last five days and by nearly 70% so far this year, despite specific issues caused by extremely high trading volumes in the previous two weeks.

SEC Commissioners Criticize Agency’s Crypto Stance

SEC Commissioners Criticize Agency's Crypto Stance

Some of the SEC’s commissioners voiced their disapproval of the agency’s decision to take action against Shapeshift, a former platform for trading digital assets. Hester Peirce and Mark Uyeda, commissioners of the SEC, questioned the lack of clarification over whether tokens constituted securities. Even though ShapeShift consented to pay $275,000 for allegedly enabling trades of unidentified digital assets designated securities. 8 They stated that crypto companies find it challenging to determine whether regulations have been met due to the uncertainty, which could limit innovation.

Claiming that “cases like this do not protect investors; they intimidate innovators and entrepreneurs. Peirce and Uyeda made their position clear. We respectfully dissent.”9 Coinbase and Kraken are among the companies that have been sued by the SEC for operating unregistered securities exchanges. The commissioners’ statement echoes their frustrations.

Fed Chair Powell Says No Reason to Worry About CBDC

Federal Reserve Chairman Jerome Powell raised the possibility of a U.S. CBDC during his speech before Congress last week. “We’re nowhere near recommending or adopting a central bank digital currency in any form,” Powell stated. Stressing that any efforts to create digital currency would function within the current banking system.

Powell hoped to allay fears that a CBDC may give the Fed the power to compete with private banks or to spy on individuals’ financial transactions. Reflecting continuing discussions about privacy and the effects of digital currency backed by central banks on the economy. His comments occur as lawmakers attempt to stop the Fed from creating CBDCs without congressional approval.

What to Expect from Ether Network Upgrade

I am anticipating this week’s Deneb-Cancun (or Dencun) network upgrade. The price of Bitcoin Breaks $72K Ether (ETH) has surpassed $4,000 for the first time since December 2021. With Monday’s gains, Ether is up over 4% and is up over 70% so far this year. Several layer-two network protocols came in, according to¬†Fidelity Digital Assets. The improvement will serve to lower Ethereum blockchain costs.

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