Bitcoin soared to over $65,000 on Monday, reaching a two-year peak as a significant influx of investments propelled it close to its all-time high.
The cryptocurrency touched $65,537 in Europe after setting a two-year record in Asia, maintaining a 4% increase at $65,045. Its highest value recorded was $68,999.99 in November 2021.
This year, Bitcoin, the most valuable cryptocurrency, has seen a 50% increase, a substantial part of this growth occurring in recent weeks. This surge is attributed to a rise in funds flowing into U.S.-based Bitcoin funds.
Earlier this year, the approval and introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. marked a pivotal moment. This development attracted new, large-scale investors, reigniting the enthusiasm and momentum seen in the lead-up to the 2021 record highs.
Markus Thielen, head of research at 10x Research in Singapore, noted the continuous investment flow, bolstering investor confidence as prices climb. The week leading to March 1 saw net inflows of $2.17 billion into the ten largest U.S. spot Bitcoin funds, with BlackRock’s iShares Bitcoin Trust receiving over half of these funds, as per LSEG data.
Ethereum, Bitcoin’s smaller counterpart, also experienced significant growth, fueled by speculation around the potential approval of its ETFs. It has increased by 50% year-to-date, reaching two-year highs with a 2.6% rise to $3,518 on Monday.
Brent Donnelly, trader and president at Spectra Markets, remarked on the positive correlation between the Nasdaq’s performance and the crypto market. He highlighted Bitcoin’s role as a high-volatility tech proxy and liquidity measure, suggesting a return to the bullish market of 2021 characterized by widespread gains and investor enthusiasm.
