Bitcoin has gone &#34;crazy&#34; and surpassed silver to become the world's eighth-largest asset.
On March 12th, the price of Bitcoin broke through the $72,000 mark for the first time in history, reaching an all-time high even after adjusting for inflation. Moreover, the total market value of Bitcoin has exceeded that of silver, making it the eighth most valuable asset in the world. In addition, the price of Ether has also surpassed $4,000 for the first time since December 2021.
Some analysts point out that there are seven main reasons for the significant rise in Bitcoin prices:
<ol>
<li>The London Stock Exchange is about to accept applications for cryptocurrency ETNs, and the UK Financial Conduct Authority supports providing ETNs to institutional investors; 2) Bitcoin ETFs are driving an increase in demand for Bitcoin; 3) The peak of the US interest rate hike cycle is favorable for boosting the attractiveness of Bitcoin; 4) The supply of Bitcoin in the Asian market is relatively limited; 5) Short-term market behavior; 6) Long-term investors have not sold Bitcoin on a large scale; 7) The deteriorating financial situation of the US government enhances Bitcoin's &#34;safe haven&#34; function.</li>
</ol>
<h2>London Stock Exchange to Accept Applications for Cryptocurrency ETNs</h2>
Analysts point out that the rise in Bitcoin is driven by various factors:
1) Continued positive news in the Bitcoin market boosts market optimism.
On March 11th, the London Stock Exchange announced that it will start accepting applications for Bitcoin and Ether cryptocurrency Exchange Traded Notes (ETNs) in the second quarter of 2024. ETNs are a financial instrument that allows investors to trade the value of cryptocurrencies on traditional stock exchanges, rather than directly trading the cryptocurrencies themselves. This move indicates that cryptocurrencies are gradually being accepted by mainstream financial markets, providing investors with more investment channels.
Furthermore, the UK's Financial Conduct Authority (FCA) has approved exchanges to offer cryptocurrency ETNs to institutional investors, which may attract more institutional investors to participate in the cryptocurrency market. However, due to the high volatility and complexity of the cryptocurrency market, the FCA will continue to prohibit individual investors from purchasing. The FCA warns that these products are not suitable for retail investors and may expose them to excessive risks.
2) The emergence of Bitcoin ETFs allows more investors to invest in Bitcoin through traditional financial market channels, increasing demand for Bitcoin. Joel Kruger, currency strategist at LMAX Group, stated that although individual investors in the UK may not be able to directly invest in cryptocurrency ETNs, the introduction of cryptocurrency ETFs allows the public to participate in the cryptocurrency market in a more regulated and secure manner, thereby enhancing the legitimacy and attractiveness of cryptocurrencies.
3) The external macro environment has become favorable, with a high probability that the US interest rate hike cycle has peaked. When interest rates fall, investors may seek higher-risk assets for higher returns, and the depreciation of the US dollar may make assets priced in dollars, such as Bitcoin, more attractive.
<ul>
<li>
In the Asian market, the supply of Bitcoin is relatively limited, and an increase in demand may lead to a price increase.
</li>
<li>
Market behavior also affects the price of Bitcoin. When the price of Bitcoin approaches a key resistance level, short-term speculative traders may try to predict the price peak and short sell. If the price continues to rise, these traders may be forced to close their positions, further driving up the price. This phenomenon, where forced liquidation leads to a price increase, is known as a pseudo negative gamma effect.
</li>
<li>
Long-term investors are not eager to sell their Bitcoin. Data from on-chain analysis company Glassnode shows that in 2021, when the price of Bitcoin first reached $69,000, the current amount of Bitcoin transferred by long-term holders has not reached the level of 2021. This indicates that long-term holders are not selling Bitcoin on a large scale in the current market environment.
</li>
<li>
The deteriorating financial situation of the US government has strengthened Bitcoin's function as a &#34;safe haven.&#34; Recently, several financial experts have warned about the growing debt crisis of the US government.
</li>
</ul>
Author of &#34;Rich Dad Poor Dad&#34; Robert Kiyosaki posted on March 11th:
<blockquote>
&#34;The US government debt increases by $1 trillion every 90 days. I recommend investors to 'be prepared' and buy more valuable storage assets such as gold, silver, Bitcoin, etc.&#34;
</blockquote>
Entrepreneur and angel investor Balaji Srinivasan stated in a post on March 11th:
<blockquote>
&#34;The heavy US government debt could lead to an economic crisis, as the US government's debt is skyrocketing unsustainably. US national debt has grown by 25% since 2020, reaching a record $34.5 trillion.&#34;
&#34;Bitcoin, as a decentralized asset, can provide a way to protect personal wealth from government intervention and the impact of unstable economic policies. More and more people are realizing the recent increase in demand for alternative currencies (such as cryptocurrencies and precious metals) may be related to global economic uncertainty, currency devaluation, and distrust of the traditional financial system.&#34;
</blockquote>
<h2>The US Securities and Exchange Commission may approve the issuance of Ethereum ETF</h2>
Investor interest in the cryptocurrency market is not limited to Bitcoin, as other cryptocurrencies are also gaining attention, such as Ethereum, which has broken $4,000 for the first time since December 2021.
Analysts point out two possible factors leading to the rise in Ethereum price: the upcoming Dencun upgrade and the potential approval of an Ethereum ETF by the US Securities and Exchange Commission (SEC).
The Dencun upgrade is expected to improve the performance of the Ethereum network, especially by introducing proto-danksharding to speed up transactions and reduce costs, which could have a positive impact on the price of Ethereum. Approval of an Ethereum ETF would make it easier for more traditional investors to invest in Ethereum. It is reported that an Ethereum ETF may be approved more quickly, unlike the lengthy process for Bitcoin ETF applications.

1) The London Stock Exchange is about to accept applications for cryptocurrency ETNs, and the UK Financial Conduct Authority supports providing ETNs to institutional investors; 2) Bitcoin ETFs promote an increase in demand for Bitcoin; 3) The peak of the US interest rate hike cycle is conducive to boosting the attractiveness of Bitcoin; 4) The supply of Bitcoin in the Asian market is relatively limited; 5) Short-term market behavior; 6) Long-term investors have not sold Bitcoin on a large scale; 7) The deteriorating fiscal situation of the US government enhances Bitcoin's "safe haven" function.

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Why has Bitcoin gone crazy? Seven major reasons!