Bitcoin’s price approaches $73,000, reaching a new all-time high

Cryptocurrency surges after the UK financial regulator announces approval for trading crypto-backed securities

Bitcoin has surged to a new record price of nearly $73,000 (£57,000), following an announcement from the UK financial regulator permitting the trading of cryptocurrency-backed securities.

The cryptocurrency reached a peak of $72,720 on Monday evening, surpassing its previous high from November 2021 of nearly $69,000.

This recent price increase coincided with the UK financial regulator’s announcement on Monday that it would “not object” to investment exchanges establishing a UK-listed market segment for cryptoasset-backed exchange traded notes (cETNs), a financial product that can be traded similarly to a stock.

Nevertheless, the Financial Conduct Authority stated that it would not authorize the sale of cETNs to retail investors, or the general public.

The FCA continues to caution individuals that cryptoassets are highly risky and largely unregulated. “Those who invest should be prepared to lose all their money,” it stated in a release.

Bitcoin’s performance this year has been bolstered by the approval of exchange-traded funds (ETFs) by the US financial regulator. ETFs are a collection of assets that can be traded on an exchange, much like shares, and track the price of the cryptocurrency.

Despite the approval, Securities and Exchange Commission chair Gary Gensler expressed skepticism about bitcoin, describing it in January as a “speculative, volatile asset” frequently used for illicit purposes such as ransomware and terrorist financing.

Additionally, an upcoming “halving” of bitcoin, where the production of new bitcoin is halved, is anticipated to support the currency by reducing its supply, thereby increasing its price.

Neil Wilson, the chief analyst at brokerage Finalto, viewed the FCA’s action as a positive signal for the cryptocurrency market. He noted that “parabolic” market movements, which denote rapid price surges, typically result in significant pullbacks, but he cautioned that “we cannot be certain with bitcoin anymore.”

He further commented, “There is uncertainty regarding the available spare cash that can be invested in it.”