Few hurdles seem to be stopping Bitcoin's ascent. The largest cryptocurrency gained for the second day and moved closer to its all-time high on Monday as exchange-traded fund demand was expected to be strong.
The most liquid token reached $65,010, its first move above $65,000 since November 2021, before falling to $64,917 at 8:28 a.m. London. The largest crypto asset is in high demand because to US-listed Bitcoin ETFs, which began trading on Jan. 11. In the past year, Bitcoin has risen 186%.
Since US Bitcoin ETFs launched, BlackRock Inc. and Fidelity Investments have received $7.35 billion in net inflows. Even Grayscale Bitcoin Trust's roughly $9 billion outflow since the ETFs were introduced hasn't swayed traders.
Hayden Hughes, co-founder of social-trading platform Alpha Impact, said markets are rising north in anticipation of tonight's ETF inflows and prices rallying due to low liquidity over the weekend.
Given the ETFs' strong demand and fear of missing out before Bitcoin halving in April, traders are expecting on the price to shortly break the record of roughly $69,000, established during the Covid epidemic in November 2021. When mining rewards are halved, coin supply growth may slow, squeezing demand. Altcoins like Cardano and Solana rose 8% and 1% on Monday.
Bitcoin's rally also boosted meme coins, small-cap tokens. Dogecoin rose 20% and Shiba Inu 34% in 24 hours.
“This is a situation reminiscent of the 2021 bull run, with retail traders looking to make quick profits from rising prices in very volatile tokens,” said Orbit Markets co-founder Caroline Mauron.
Crypto derivatives, which reflect traders' positions, also showed bullishness. Open interest at Chicago-based CME Group's Bitcoin and Ether futures markets is 1.8% below record highs. The rise in outstanding contracts indicates US institutions' interest in crypto risk and hedging.
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