In the bustling Asian trade on Tuesday, Bitcoin surged past significant thresholds, landing just under $1,000 shy of its all-time high recorded during the pinnacle of the 2021 bull run. The world’s largest cryptocurrency experienced an impressive 8.5% ascent, reaching an over two-year high of $68,450.9. By 20:05 ET (01:05 GMT), it comfortably maintained levels above $68,000, poised to challenge the record peak of $68,999 set in late 2021.
Bitcoin‘s recent gains were propelled by consistent capital inflows into the token, notably following the green light for various U.S. exchange-traded funds directly mirroring its price. The cryptocurrency’s correlation with technology stocks also contributed to its upward trajectory. Meanwhile, anticipation surrounded the upcoming halving in the rate of new Bitcoin generation, an event expected to create market tightening.
CoinShares data highlighted a fifth consecutive week of capital inflows into Bitcoin-linked investment products, totaling $1.7 billion in the week ending March 4. Despite a rise in short positions, U.S.-listed ETFs tracking Bitcoin, particularly those from BlackRock and Fidelity, dominated the lion’s share of inflows. Conversely, Grayscale faced ongoing outflows as it contended with heightened competition in the Bitcoin ETF arena.
Microstrategy, the largest corporate holder of Bitcoin, added to the positive sentiment by announcing plans to issue $600 million in debt for further Bitcoin purchases. Ethereum, the second-largest cryptocurrency globally, also enjoyed a 4% surge to a two-year high of $3,624.03, with attention focused on potential approval for a spot ETF.
Crypto-linked stocks experienced an upswing on Wall Street in tandem with the crypto market’s positive momentum. However, trading volumes in Bitcoin and Ethereum, as per Investing.com data, remained notably below the peaks witnessed in the aftermath of the 2022 bull run.
While Bitcoin’s remarkable rally, exceeding 400% from late-2022 lows, commands attention, retail interest in the cryptocurrency has shown reluctance due to high-profile frauds and bankruptcies over the past two years. Allegations of price manipulation, particularly related to stablecoins, have surfaced following Bitcoin’s recent surge, while relatively low trading volumes are attributed to its extraordinary price escalation.
