Islamabad: Bitcoin experienced a significant rally on Monday, surpassing $65,000 and reaching its highest level in two years, buoyed by a surge of investment that brought it close to its all-time high.
During European trading hours, the price of Bitcoin peaked at $65,537, marking a new two-year high following an earlier surge in Asian trading. Currently, it is up 4% at $65,045. Bitcoin’s previous record high was $68,999.99 in November 2021.
This year, the largest cryptocurrency by market value has seen a 50% increase, with the majority of the rise occurring in recent weeks, fueled by increased inflows into U.S.-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year has attracted new large investors and reignited enthusiasm and momentum reminiscent of the 2021 bull run. These updates can be tracked down from cryptocurrency news website.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted that investor confidence remains high as the price continues to rise.
In the week ending March 1, net inflows into the 10 largest U.S. spot bitcoin funds totaled $2.17 billion, with a significant portion going into BlackRock’s iShares Bitcoin Trust (IBIT.O), according to LSEG data.
Read more: Bitcoin rises 5.11% to $23,564.93
Ethereum, Bitcoin’s smaller rival, has also seen significant gains amid speculation that it may soon have its own exchange-traded funds, driving inflows. Year-to-date, Ethereum is up 50% and was trading at two-year highs on Monday at $3,518, up 2.6% for the day.
Brent Donnelly, trader and president at analysis firm Spectra Markets, likened the current market conditions to those of 2021, where Bitcoin serves as a high-volatility tech proxy and liquidity thermometer, performing well alongside the Nasdaq’s all-time highs.