Bitcoin has reached a new all-time high price exceeding $70,000 following the announcement from the UK financial regulator permitting trading in crypto-backed securities.
On Monday morning, the cryptocurrency was trading at $71,588, surpassing its previous peak of nearly $69,000 achieved last week in November 2021.
This recent price surge comes after the UK financial regulator stated that it has no objections to investment exchanges listing crypto-backed public market segments, such as cETNs – a financial product that can be traded similarly to stocks.
However, the Financial Conduct Authority clarified that the sale of cETNs to retail investors or the general public is not permitted.
In a statement, the FCA cautioned that crypto assets are highly risky and essentially unregulated, warning investors to be prepared for potential loss of all funds.
Bitcoin has gained support this year following the approval of exchange-traded funds (ETFs) by U.S. financial regulators. ETFs are a collection of assets that mirror cryptocurrency prices and are tradable like stocks on exchanges.
Despite approval, Securities and Exchange Commission Chairman Gary Gensler expressed doubts about Bitcoin, viewing it as a speculative and volatile asset often used for illicit activities like ransomware and terrorist financing.
The upcoming “halving” of Bitcoin, which reduces the creation of new Bitcoins, is anticipated to bolster the currency by diminishing supply and consequently driving up prices.
Neil Wilson, a principal analyst at brokerage firm Finalt, viewed the FCA’s decision as a positive development for the crypto market. He remarked on the potential risks of parabolic market movements leading to significant declines, but expressed uncertainties regarding Bitcoin’s future.
Wilson also raised concerns about the availability of surplus funds for Bitcoin investments.
Source: www.theguardian.com
