Bitcoin soared to a two-year high on Monday, breaking the $68,000 threshold, fueled by a surge of investment that brought it within striking distance of its previous record levels.
Reaching a session high of $68,580, the cryptocurrency settled at $68,161, inching closer to its all-time high of $68,999.99 recorded in November 2021. This year alone, Bitcoin has witnessed a remarkable 50% surge, with a significant portion of this increase occurring in recent weeks, coinciding with a substantial influx into U.S.-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds in the United States earlier this year played a pivotal role in attracting new substantial investors, rekindling enthusiasm, and reigniting momentum reminiscent of the 2021 bull run.
Markus Thielen, Head of Research at crypto analytics house 10x Research in Singapore, commented, “The flows are not drying up as investors feel more confident the higher price appears to go.”
According to LSEG data, net flows into the ten largest U.S. spot bitcoin funds totaled $2.17 billion in the week ending March 1, with over half directed towards BlackRock’s iShares Bitcoin Trust.
Ether, Bitcoin’s smaller rival, has joined the rally on speculation that it may soon see exchange-traded funds driving inflows. With a 50% increase year-to-date, Ether reached two-year highs, closing at $3,518 on Monday with a daily gain of 2.6%.
This crypto surge aligns with records being broken across global stock indexes, from Japan’s Nikkei to the S&P 500 and Nasdaq. Simultaneously, volatility measures in equities and foreign exchange have seen a decline.
Brent Donnelly, Trader and President at analysis firm Spectra Markets, noted, “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.”
