Bitcoin has witnessed an extraordinary surge, reaching a two-year peak on Monday and edging close to its all-time high by surpassing the $68,000 mark, as reported by Reuters.
The cryptocurrency reached a session zenith of $68,580, with the most recent recorded value standing at $68,161.
This notable surge follows a 50 percent increase in Bitcoin’s value this year, largely propelled by significant inflows into US-listed Bitcoin funds, particularly in recent weeks. Markus Thielen, head of research at 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.”
The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have been instrumental in attracting new large investors, rekindling enthusiasm and momentum akin to Bitcoin’s surge to record levels in 2021.
According to data from LSEG, net flows into the top 10 US spot bitcoin funds amounted to $2.17 billion in the week ending March 1, with more than half of this capital directed towards BlackRock’s iShares Bitcoin Trust.
The spike in Bitcoin’s value has also influenced other cryptocurrencies, with Ethereum (ETH) witnessing a 50 percent year-to-date increase. On Monday, Ethereum reached two-year highs, marking a 2.6 percent daily surge and reaching $3,518.
This crypto rally coincides with record-breaking performances across traditional stock indexes, including Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq. Simultaneously, volatility indicators in equities and foreign exchange have trended lower.
Brent Donnelly, trader and president at Spectra Markets, commented on the market dynamics, stating, “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.” He highlighted a return to a market reminiscent of 2021, characterized by positive sentiment and upward momentum across all asset classes.
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