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Bitcoin blew past $60,000 for the first time in more than two years on Wednesday as the popularity of spot ETFs drove a renewed trading frenzy for volatile cryptocurrencies — and crashed popular crypto exchange Coinbase.

The price of bitcoin soared to nearly $64,000 in the early afternoon, nearing it’s all-time high of $$68,789 in November 2021, before falling to around $61,000 by 6 p.m. That marked an 18% increase in the leading digital currency compared to one week ago and 40% bump compared to a month ago.

In the midst of Wednesdays rally, Coinbase, one of the largest digital asset exchanges, warned users that its website was experiencing issues but assured customers that their assets are safe after several complained that their digital wallets showed “$0.00.”

“We are dealing with a large surge of traffic — apologies for any issues you encounter, Coinbase CEO Brian Armstrong posted on X.

The bullish run on the world’s most popular crypto token could be the start of what Split Capitals Zaheer Ebtikar called a pretty clear FOMO kind of rally, referring to the “fear of missing out.”

More and more people are just convinced to buy, Ebkitar told Bloomberg.

The massive early success of recently approved spot bitcoin ETFs — which allow investors to acquire stakes in funds that own bitcoin offered by Blackrock, Fidelity and other firms has played a key role in the surge, experts told The Post.

The boom drove $520 million into BlackRocks Bitcoin ETF, a one-day record.

I do think the fact this is happening concurrent with the ETFs and you can look at the inflows of those things that seems to be a pretty big driver for this [rally], said Colin Harper, head of research at the bitcoin mining software firm Luxor.

Theres a large segment of the population that sees regulatory approval as, well, the states okay with this, theyre not going to ban it, institutions are cleared now. Theres a lot more legitimacy to it for the average person, Harper added.

However, other market experts warned that investors may soon see a “sharp correction” of 20% or more.

“This move has been very sharp, leverage is very high at the moment,” AnB Investments’ Jaime Baeza Baeza told Bloomberg.

The overall market capitalization for the cryptocurrency market hovered at a whopping $2.31 trillion as of Wednesday afternoon after crossing the $2 trillion threshold earlier this month for the first time in two years.

Cryptocurrencies have re-emerged as a hot asset alongside other trendy bets such as AI chipmaker Nvidia and weight-loss drug maker Eli Lilly, according to Jake Dollarhide, CEO of Longbow Asset Management.

You have the additional momentum of it being legitimatized by the SEC approving the ETFs from Blackrock and others. And then, frankly, the trash was hauled off to the curb in the form of Binance and FTX, Dollarhide said. You get rid of some bad actors and you rebuild trust within the crypto space.

The latest rally in bitcoins price brought it within striking distance of its all-time high of $69,000 a number that seemed unattainable over the last two years as a so-called crypto winter crushed demand for cryptocurrencies.

Bitcoins struggles throughout 2021 and 2022 were compounded by a number of scandals, including the collapse of convicted crypto fraudster Sam Bankman-Frieds FTX empire.

We are dealing with a LARGE surge of traffic – apologies for any issues you encounter. The team is working to remediate.

Other bullish factors include investor optimism that the Federal Reserve will cut sky-high interest rates at some point this year as well as a looming bitcoin halving a pre-planned event due in April that reduces the amount of digital currency people receive for mining by half.

Bitcoins halvings are meant to ensure the currencys scarcity over time. While the exact impact of each halving on bitcoins value is up for debate among experts, the price of bitcoin has soared ahead of past halvings that occurred in 2020, 2016 and 2012.

As the halving approaches, supply of new coins will be cut in half while demand is buoyed by the ETFs, said Christopher Alexander, chief analytics officer at Pioneer Development Group.

Once the small retail investors fully regain confidence in crypto exchanges there will be demand pressure at a level that has never been seen before, Alexander added.

With Post wires

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Politics

South Korea stops short of allowing crypto in updated donation laws

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South Korea stops short of allowing crypto in updated donation laws

Department store gift vouchers, stocks, and loyalty points from tech giants can be donated to charities, but not crypto.

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Sports

Cassidy: Nine Knights had surgeries during season

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Cassidy: Nine Knights had surgeries during season

Seeing their bid for consecutive Stanley Cups end in the first round wasn’t the only pain the Vegas Golden Knights felt this postseason.

Nine Vegas players had surgeries this season, coach Bruce Cassidy shared Sunday after his team’s 2-1 loss to the Dallas Stars in Game 7 of the Western Conference quarterfinals.

“Nine guys. Your roster is only 23, so nine players,” Cassidy said. “Two of them internal surgeries. You never know how those are going to play out. Some other ones were a little more defined, but I give our guys a lot of credit.”

Even though the Golden Knights had 20 players returning from their 2022-23 title team, they still faced questions heading into the playoffs. Most of those queries were about what a fully healthy Golden Knights team would look like once the postseason started. That also included questions about how trade deadline acquisitions — such as forwards Tomas Hertl and Anthony Mantha, and defenseman Noah Hanifin — would fit on an established team.

The Golden Knights opened the series by winning both games at the American Airlines Center in Dallas to take a 2-0 series lead before the Stars won three straight. Vegas rallied with a 2-0 win in Game 6 at T-Mobile Arena in Las Vegas to force a Game 7.

“Up 2-0, it would’ve been nice to find a way to win two of those three games,” Golden Knights defenseman Alex Pietrangelo said. “They made some adjustments that I don’t think we adjusted well enough right way. That’s on us as players to find a way when we’re up 2-0 to get the job done.”

NHL Injury Viz, a site that tracks games lost to injuries, has data revealing that the Golden Knights were among the teams to lose the most player games to injury during the 2023-24 season.

In total, the Golden Knights had 10 players who missed more than 10 games because of various injuries. Some players, such as defenseman Shea Theodore (35 games) and left winger Mark Stone (26), had extended absences. Others, such as goaltender Adin Hill, missed more than 10 games because of separate injuries. Hill missed seven games because of a lower-body injury and another 15 games because of an undisclosed injury, according to NHL Injury Viz’s data.

Cassidy said many of those injuries happened when the Golden Knights were trying to find cohesion with their forward lines and defense pairings.

Hertl was recovering from a knee procedure when he was acquired via trade from the San Jose Sharks on March 8 and played just six games with his new club before the playoffs. In total, Hertl missed 28 regular-season games between the Golden Knights and Sharks.

“Some of those surgeries are obviously correcting a problem, but it takes us a while to get back up to speed,” Cassidy said. “That would be the unfortunate part. They came and did get healthy enough for the playoffs. That was the positive, and now you are trying to get a team up to speed in a hurry.

“I didn’t do a good enough job of that, but that’s a lot of surgeries in one year for guys to overcome, and it defines your game.”

Stone, who underwent multiple back surgeries last season, was recovering from a lacerated spleen this season before returning ahead of Game 1. The Golden Knights captain said he was proud of how the team performed in the face of what was a challenging set of circumstances.

“We had a hard time staying healthy,” Stone said. “Still found a way to get into the playoffs, and we did give ourselves a chance to win the series with a one-goal loss in Game 7 against the top team in the conference. It’s disappointing. That’s really the only way to say it. It’s disappointing.”

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UK

Rishi Sunak admits Tories may not win general election and claims UK heading for hung parliament

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Rishi Sunak admits Tories may not win general election and claims UK heading for hung parliament

Rishi Sunak has admitted the Tories may not win the general election after grim defeats in the local polls.

The prime minister suggested the UK was on course for a hung parliament and claimed voters would not want to see Labour leader Sir Keir Starmer “propped up in Downing Street” by the SNP or smaller parties.

In an interview with The Times, Mr Sunak pointed to Sky News analysis of the local election results by election expert Professor Michael Thrasher which suggested Labour would be the largest party in a hung parliament.

Politics live: PM told to ‘wake up and smell the coffee’ after elections

“These results suggest we are heading for a hung parliament with Labour as the largest party,” Mr Sunak told the paper.

“Keir Starmer propped up in Downing Street by the SNP, Liberal Democrats and the Greens would be a disaster for Britain.

“The country doesn’t need more political horse-trading, but action. We are the only party that has a plan to deliver on the priorities of the people.”

Meanwhile, Tory rebels have warned the prime minister to change his political course after the weekend’s local election results.

Read more:
The local election winners and losers
Charts tell story of Conservative collapse

Analysis: Labour’s future success is less clear-cut

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PM on ‘disappointing’ election results

Sunak urged to take party towards right

Former home secretary Suella Braverman urged him to mould the party towards the right in order to win back voters.

But she told the BBC a change of leadership was not a “feasible prospect,” adding: “There is no superman or superwoman out there who can do it.”

Ms Braverman urged the prime minister to adopt several measures to win back voters, including further tax cuts and a cap on legal migration.

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Rishi Sunak ‘up for the fight’ in general election

Tories ‘up for the fight,’ minister insists

But Transport Secretary Mark Harper insisted Mr Sunak and the Tories are “up for the fight” of a general election despite their terrible results in the local contests.

Talking to Sky News’ Sunday Morning With Trevor Phillips, the minister said: “I think the key thing that people need to do now is get behind the prime minister, focus on the things the government is focused on delivering – the British people’s priorities around the economy, dealing with migration – and get out there and take that fight to the country ahead of the general election.”

Labour won 1,158 seats in the 107 councils in England that held elections on 2 May, an increase of more than 232.

The Liberal Democrats won 552 seats, up nearly 100, while the Tories came in third place on 515 seats, down nearly 400.

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