Bitcoin reached a two-year peak on Monday, surpassing $64,000, fueled by a surge of investments that brought it within striking distance of its all-time high. Early in the Asian trading day, it touched $64,285, marking its highest value since late 2021, and concluded the session 2% stronger at $63,850. Notably, Bitcoin‘s record high is $68,999.99, established in November 2021.
The leading cryptocurrency by market value has witnessed a remarkable 50% surge this year, with the majority of the increase occurring in recent weeks, accompanied by a surge in trading volume for U.S.-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds in the United States earlier this year has played a pivotal role in this upward trajectory. The introduction of these funds has not only attracted new substantial investors but has also reignited enthusiasm and momentum, reminiscent of the 2021 bull run.
Markus Thielen, the head of research at crypto analytics house 10x Research in Singapore, remarked, “The flows are not drying up as investors feel more confident the higher price appears to go.”
Ether, a smaller competitor to Bitcoin, has followed suit on the back of speculation that it might soon see similar exchange-traded funds, contributing to a 50% year-to-date increase. Despite reaching $3,490 on Monday, it remained just shy of the two-year highs achieved last week.
The cryptocurrency rally has coincided with record-breaking performances across various stock indexes, including Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq. This surge is further reflected in decreasing volatility indicators in equities and foreign exchange.
“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,” stated Brent Donnelly, trader and president at analysis firm Spectra Markets. He added, “We are back to a 2021-style market where everything goes up, and everyone is having fun.”
