Bitcoin (BTC) price has breached the $71,000 mark for the first time during the Asian trading session on Monday. According to the latest data from CoinMarketCap, the price of BTC soared to $71,410.77 at the time of writing. Concurrently, on the Indian exchange WazirX, the price of BTC reached approximately Rs 61 lakh.
This milestone comes as Bitcoin continues its upward trajectory following the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States (explainer follows below). Last week, the cryptocurrency achieved another landmark by surpassing the $70,000 mark for the first time ever.
The remarkable rally has resulted in a notable increase in the annualised three-month futures premium on major exchanges such as Binance, which now stands at over 25 per cent. This heightened premium is anticipated to attract cash and carry traders, thereby enhancing overall market liquidity.
The surge in Bitcoin's value underscores the growing mainstream acceptance and investor confidence in cryptocurrencies, particularly Bitcoin, as a viable investment asset. As Bitcoin continues to break new barriers, experts remain cautiously optimistic about its future trajectory amidst ongoing market volatility.
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What Are Bitcoin ETFs?
Bitcoin Exchange-Traded Funds (ETFs) function by either holding physical Bitcoin or Bitcoin derivatives, thereby offering investors a more straightforward means of participating in the cryptocurrency market.
One of the primary advantages of Bitcoin ETFs lies in their accessibility. Unlike traditional methods of acquiring Bitcoin, such as through exchanges or wallets, these ETFs allow investors to gain exposure to the digital asset through familiar investment platforms. This accessibility opens up the market to a broader range of investors, including those who may be hesitant to navigate the complexities of cryptocurrency exchanges.
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Moreover, Bitcoin ETFs offer enhanced liquidity compared to individual Bitcoin holdings. By trading on established exchanges, these funds provide investors with the ability to buy and sell shares easily, potentially mitigating some of the liquidity concerns associated with directly holding Bitcoin.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.