With the start of the European trading hour, Bitcoin (BTC) has surged past the significant milestone of $71,000, exceeding its previous all-time high set just last week. This surge can be attributed to a combination of factors that have bolstered investor confidence and triggered a wave of buying activity across the cryptocurrency market. Here’s a closer examination of the four key factors driving this unprecedented rally.
#1 London Stock Exchange Embraces Bitcoin And Ethereum ETNs
Reported by Bloomberg just prior to the price surge, the London Stock Exchange (LSE) has announced its plans to accept applications for the admission of Bitcoin and Ethereum Exchange-Traded Notes (ETNs) in the second quarter of the year.
*LSE TO ACCEPT APPLICATIONS FOR BITCOIN, ETHEREUM ETN ADMISSION: BBG
— Tree News (@News_Of_Alpha) March 11, 2024
While the exact launch date remains unconfirmed, this move signifies a major step towards mainstream financial markets’ acceptance of cryptocurrencies. The inclusion of crypto ETNs on one of the world’s oldest stock exchanges underscores the growing institutional interest in digital assets and is anticipated to attract a new wave of investors to the crypto market.
#2 The Impact Of A Short Squeeze
Predictions of a short squeeze propelling Bitcoin prices to new heights came to fruition, as forecasted by traditional finance portfolio manager Bitcoin Munger (@bitcoinmunger) on X. “We likely start the week off with a bang, courtesy of the short sellers looking to get squeezed at $70k. New highs are incoming,” Munger predicted.
We likely start the week off with a bang, courtesy of the short sellers looking to get squeezed at $70k.
New highs are incoming. Tick tock! #bitcoin pic.twitter.com/OFiNmlmc9Y
— Bitcoin Munger (@bitcoinmunger) March 10, 2024
This was evidenced by the liquidation of approximately $23.5 million in short positions during Bitcoin’s ascent to $71,000, as per Coinglass data.
#3 Tether’s Role In Capital Influx
New money was entering the market over the weekend, and last week. Leading stablecoin Tether (USDT) was minted, as on-chain analysis firm Lookonchain reported: “The Tether Treasury minted 2 billion USDT again [yesterday]! And 5 billion USDT has been minted on Tron and Ethereum in just one week!” reported on-chain analysis firm Lookonchain.
One notable transaction involved a whale or institution receiving 261.6 million USDT from the Tether Treasury and…
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