Bitcoin soared to a two-year high, breaching the $68,600 mark and closing in on its all-time peak, fueled by a continuous influx of funds into the leading cryptocurrency. With a 50% gain this year, the majority of the surge occurred in recent weeks, coinciding with a substantial increase in inflows into U.S.-listed bitcoin funds.
During Asian trading hours on Tuesday, Bitcoin was valued at $68,500, reaching a session high of $68,828—merely a hair’s breadth away from the record high of $68,999.99 set in November 2021. The approval of spot bitcoin exchange-traded funds in the United States earlier this year has paved the way for new significant investors, reigniting enthusiasm and momentum reminiscent of the 2021 surge.
“It’s crypto mania 4.0, and I think if we continue to see fairly low bond and rate volatility, it could keep going. There’s definitely something of an irrational behavior creeping into the market,” commented Kyle Rodda, senior markets analyst at Capital.com.
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.
“The appetite to gain exposure to Bitcoin is reaching insatiable levels,” noted Tony Sycamore, a market analyst at IG. Despite concerns of short-term overbought conditions, Sycamore predicts that the rally is not yet complete, with a move towards $80,000 not out of the question.
The bullish trend has coincided with record-breaking performances in stock indexes globally, including Japan’s Nikkei, the S&P 500, and the Nasdaq. Equities and foreign exchange volatility gauges have also trended lower.
Ether, Bitcoin’s smaller counterpart, has experienced a similar surge, up over 50% for the year and currently priced at $3,649. Speculation regarding the introduction of exchange-traded funds for ether has contributed to its upward momentum.
In a regulatory filing on Monday, the U.S. Securities and Exchange Commission announced a further delay in its decision on asset manager BlackRock’s application for a spot ethereum exchange-traded fund.
Additionally, Tether, the issuer of dollar-pegged stablecoins, revealed on Monday that the total value of its stablecoins has surpassed $100 billion, highlighting the continued growth of the cryptocurrency market.
