The queen of cryptocurrencies has just crossed a new record threshold, driven by investor optimism.

Continuing its crazy race, bitcoin had already reached a new record on Monday morning at more than $71,000, demand for this cryptocurrency having jumped thanks to the prospects of lower interest rates in the United States in the coming months. At 1:40 p.m., bitcoin continued to progress and traded above $72,100 according to Coinmarketcap data.

The digital currency had already hit several records last week, crushing that of November 2021, which was $68,991. Monday’s new high comes “against a context of weakening of the US dollar” after the publication of “a mixed set of employment data in the United States on Friday”, notes James Harte, analyst at Tickmill.

The unemployment rate in the United States thus climbed in February to 3.9%, its highest level since January 2022. The strengthening of expectations of American rate cuts is weakening the greenback as well as the yields on American Treasury bills, competing assets, which makes bitcoin more attractive in comparison for investors, notes Neil Wilson, an analyst at the company Finalto.

And if the US economic outlook remains generally favorable, it is also possible that the market “is concerned about the way debt continues to accumulate, particularly in the United States”, estimates Russ Mold of AJ Bell, interviewed by AFP.

This encourages investors to turn to alternative assets such as gold – which reached a new all-time high on Friday, at $2,195 – or bitcoin, he explains. The price of bitcoin has jumped nearly 70% since the start of the year, a spectacular rise after the collapse of prices following the collapse of several giants in the sector at the end of 2022.

New financial products

The main cryptocurrency by capitalization, bitcoin had seen its value soar to new historic records in recent days, driven by the authorization in the United States last January of the sale of a new type of investment product which follows the price bitcoin.

On Monday, the watchdog of the British markets, the FCA, gave the green light to the listing of securities backed by cryptocurrencies in the United Kingdom, but only for “professional investors”. For Neil Wilson, of Finalto, the arrival on the market of the new fund in the United States remains the “catalyst” for the rise in the price of bitcoin because it “means that investors can easily access”.

The market is also anticipating “halving”, a technical phenomenon which consists of halving the bitcoin reward granted to bitcoin “miners” – those who contribute to the creation of the chain of blocks by validating transactions. The halving takes place approximately every four years, and the next one should take place in April. By reducing the amount of bitcoins available for purchase, this phenomenon should strengthen the value of bitcoins.


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