Bitcoin surges past $72,000 for the first time; Find out what's fuelling the cryptocurrency's rally

Bitcoin has surged past the $72,000 mark for the first time, extending its rally for the sixth consecutive day. This also marks a nearly 70% gain since the beginning of the year, driven by significant inflows into US exchange-traded funds.

Equities mixed, cryptos fly

The leading cryptocurrency climbed as much as 5% to hit $72,880 on Monday before retracing some of its gains. Other smaller tokens like Ether, Solana, and Avalanche also saw gains. This upward momentum in the crypto market persisted despite mixed performances in equities, with investors eagerly awaiting a crucial report on US inflation.

Vetle Lunde, a senior analyst at K33 Research, remarked, "It’s a full-on continuation of last week’s trend. Traders are clearly in a risk-on mode."

The ETF-boost for Bitcoin

Investor interest has surged, with nearly $10 billion flowing into a series of new Bitcoin ETFs launched in the US over the past two months, fueling a broad rally across crypto markets. In a further boost to digital assets, the London Stock Exchange announced its acceptance of applications for admitting Bitcoin and Ether exchange-traded notes, while Thailand's securities regulator greenlit the purchase of overseas crypto ETFs by retail investors.

Time to bet on cryptocurrencies?

Chris Newhouse, a DeFi analyst at Cumberland Labs, noted, "With new highs being made and signs of continuing institutional support shown by the LSE news, some people might’ve seen that breakout as a perfect opportunity to get even longer BTC."

Crypto-assets: The bullish signals

The success of Bitcoin ETFs adds to the bullish signals for cryptoassets, including the upcoming quadrennial "halving" in April, which will halve Bitcoin's supply growth. Additionally, technical indicators point to growing interest from institutional and retail investors. Open interest on Chicago-based CME Group’s Bitcoin futures market has surged 44% from this year’s low, indicating a rising appetite for leveraged long positions in Bitcoin.

MicroStrategy Inc., known for incorporating Bitcoin into its corporate strategy, revealed it spent $822 million on additional tokens from February 26 through March 10, underscoring continued institutional interest in the digital asset.