Bitcoin (BTC) has seen a robust 5.5% increase
to $70,000 this week, albeit slightly retracing from its peak of $71,637 on
Tuesday. While a solid breakthrough of the $70,000 resistance could pave the
way for further gains up to $78,000-80,000 per coin, the leading cryptocurrency
appears hesitant to reach those levels at the moment.
One notable catalyst for Bitcoin's surge was
the announcement that the London Stock Exchange (LSE) will introduce a
marketplace for bitcoin and ether exchange-traded notes (ETNs) starting May 28.
Applications for trading these crypto ETNs will be accepted from April 8, with
a notably short deadline. It seems institutional players are prepared for this
development and will swiftly file their applications. However, these ETNs will
not be accessible to retail investors, potentially increasing the cost of
cryptocurrency investments for them.
While this news is positive, it may not be
sufficient to propel Bitcoin significantly above $70,000, especially
considering the deteriorating conditions in the crypto market. Three major spot
Bitcoin ETFs experienced net capital outflows last week, with Grayscale's GBTC
alone losing $2.0 billion. Profit-taking exacerbated the situation, with
Bitcoin briefly dipping to $60,817 per coin on March 20 before recovering
following the Federal Reserve's reaffirmation of its dovish stance.
Another significant development is the report
of the U.S. Securities and Exchange Commission (SEC) imposing a $1.9 billion
fine on Ripple. Once this fine is settled, the XRP token may have the
opportunity to recover from the losses incurred during the SEC's prolonged
scrutiny of the company in 2023 and 2023.
However, the potential launch of spot Bitcoin
ETFs in Hong Kong is offset by allegations against KuCoin, including money
laundering, by the United States Southern District of New York (SDNY)
prosecutors and the Commodity Futures Trading Commission (CFTC). Following
Binance's recent $4.3 billion fine and suspension of activities in the
Philippines, KuCoin could be the next target of U.S. authorities, indicating
ongoing regulatory challenges in the cryptocurrency industry.