Bitcoin surged to its highest level in two years on Monday, surpassing $65,000 fueled by a surge of investment that propelled it close to its previous peak.
During the European trading session, its price reached a peak of $65,537, following a new two-year high set in Asian markets. Currently, it stands at $65,045, marking a 4 percent increase. Bitcoin’s previous record high was $68,999.99 in November 2021.
The leading cryptocurrency by market capitalization has experienced a 50 percent increase in value this year, with much of the recent growth occurring in the past few weeks, coinciding with a significant influx of funds into US-listed bitcoin investment products.
The approval of spot bitcoin exchange-traded funds earlier this year in the United States has facilitated the entry of new large-scale investors and reignited enthusiasm reminiscent of the surge to record levels in 2021.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.”
According to data from LSEG, net inflows into the ten largest US spot bitcoin funds totaled $2.17 billion in the week ending March 1, with over half of that sum directed towards BlackRock’s iShares Bitcoin Trust.
Ether, a smaller competitor, has also witnessed a significant increase in value amid speculation surrounding the potential approval of exchange-traded funds. Year-to-date, it has surged by 50 percent, reaching two-year highs and trading at $3,518 as of Monday, representing a 2.6 percent increase for the day.
This bullish momentum in cryptocurrencies aligns with record-breaking performances in stock indexes such as Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq, while volatility indicators in equities and foreign exchange markets have shown a downward trend.
Brent Donnelly, a trader and president at analysis firm Spectra Markets, commented, “In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer. We are back to a 2021-style market where everything goes up and everyone is having fun.”
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