On Monday, Bitcoin's price soared to its highest in two years, exceeding $65,000 and approaching its all-time peak.
Key Points
Bitcoin's price soared to a two-year high, surpassing $65,000 and nearing its record high from November 2021.
The surge in Bitcoin's value is partly attributed to the influx of investments into U.S.-listed bitcoin funds, bolstered by the approval of Bitcoin ETFs earlier in the year.
The cryptocurrency market's rally coincides with record performances in global stock indexes, indicating a broader trend of investment growth and market optimism.
The cryptocurrency reached up to $65,537 in Europe after setting a new two-year record in Asia, and was last seen up by 4% at $65,045. Its highest price ever was $68,999.99 in November 2021.
Bitcoin, the most valuable cryptocurrency, has increased by 50% this year, with a significant part of this growth happening in recent weeks. This surge is linked to a boost in investments into bitcoin funds in the U.S.
The approval of bitcoin exchange-traded funds (ETFs) in the U.S. earlier this year attracted big investors, sparking a renewed excitement similar to the 2021 surge. Markus Thielen from 10x Research noted that investment flows continue to grow as investors become more confident with the rising price.
In the first week of March, the top ten U.S. bitcoin funds saw an inflow of $2.17 billion, with over half going to BlackRock's iShares Bitcoin Trust. Ethereum, another major cryptocurrency, also saw significant gains, rising 50% this year and hitting a two-year high.
This cryptocurrency rally coincides with record-breaking performances in major stock indexes around the world and lower volatility in stocks and foreign exchange. According to Brent Donnelly from Spectra Markets, the thriving stock market, particularly the tech-driven Nasdaq, suggests cryptocurrencies like Bitcoin will also perform well, recalling the bullish market of 2021 where investments across the board saw substantial gains.