SINGAPORE/LONDON -Bitcoin surged to a two-year high on Monday, above $65,000, as a surge of capital brought it dangerously close to reaching record highs.
In Asian trade, the price reached a fresh two-year high; early in Europe, it hit a session high of $65,537. Most recently, it rose 4% to $65,045. In November 2021, Bitcoin reached a new all-time high of $68,999.99.
Investments into bitcoin funds registered in the United States have increased dramatically in recent weeks, contributing significantly to the 50% increase in the market value of the largest cryptocurrency by market cap this year.
Earlier this year, the US government authorized bitcoin exchange-traded funds. They have re-ignited excitement and momentum similar to the buildup to record levels in 2021 with their launch, which has attracted new significant investors.
"The flows are not drying up as investors feel more confident the higher price appears to go," stated Markus Thielen, head of research at crypto analytics agency 10x Research in Singapore. According to LSEG data, $2.17 billion was poured into the top ten U.S. bitcoin funds in the week leading up to March 1. BlackRock’s iShares Bitcoin Trust received over 50% of that total.
The rumor that ether, a smaller rival, may soon also have exchange-traded funds driving inflows has caught on. By Monday, it had risen 2.6% to $3,518 and was trading at two-year highs, up 50% year-to-date.
At the same time as the rally has begun, stock indexes across the board, including the tech-heavy Nasdaq and Japan's Nikkei, have set new lows for volatility, and foreign currency and equity volatility gauges have turned lower.
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," commented Brent Donnelly, trader and president at analyst firm Spectra Markets.
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