Bitcoin soars to new high above $71,000

Bitcoin hit a fresh record above $71,000 on Monday as demand for the cryptocurrency picked up amid optimism that the Federal Reserve will cut interest rates this year.

The unit hit a peak of $71,432 in afternoon Asian business, according to Bloomberg data, meaning it has advanced almost 70 percent this year.

The rally was helped by news that Britain's Financial Conduct Authority had said it would allow the creation of crypto-related securities.

That comes after US authorities gave the green light this year to exchange-traded funds pegged to Bitcoin's spot price, persuading some mainstream investors to take the plunge by adding the unit to their portfolio.

UK regulator to allow crypto exchange-traded notes

Separately, Britain's financial watchdog said on Monday it will now permit recognised investment exchanges to launch crypto-backed exchange-traded notes, the latest regulator to pave the way for digital asset trading products.

Theses products would be only available for professional investors such as investment firms and credit institutions authorised to operate in financial markets, the Financial Conduct Authority (FCA) said in a statement.

However the FCA warned that crypto exchange traded notes (ETNs) - bonds issued by financial institutions that track the performance of underlying assets - pose harm to retail investors.

Exchanges must ensure orderly trading and proper protection for investors, the FCA said, with crypto ETNs meeting all the requirements for UK listings.

The crypto market has surged in recent months as regulators globally - which have long warned of the risks from volatile cryptocurrencies such as bitcoin - approve digital asset investment products.