Bitcoin, the leading cryptocurrency by market value, soared to a two-year peak on Tuesday, surpassing the $68,600 mark and edging closer to its all-time high as investment flows continue to pour into the digital asset.
Having already surged by 50% since the beginning of the year, Bitcoin’s recent ascent has been particularly pronounced, with significant inflows into U.S.-listed bitcoin funds observed in recent weeks.
During Asian trading hours on Tuesday, Bitcoin hovered around $68,500, reaching a session high of $68,828. This puts it within striking distance of its previous all-time peak of $68,999.99, achieved back in November 2021.
The approval of spot bitcoin exchange-traded funds in the United States earlier this year has played a pivotal role in reigniting investor enthusiasm and momentum reminiscent of the cryptocurrency’s previous bull run in 2021.
Kyle Rodda, senior markets analyst at Capital.com, remarked, “It’s crypto mania 4.0, and I think if we continue to see fairly low bond and rate volatility, it could keep going. There’s definitely something of an irrational behavior creeping into the market.”
Data from LSEG indicates that net flows into the 10 largest U.S. spot bitcoin funds totaled $2.17 billion in the week ending March 1, with a significant portion of that directed towards BlackRock’s iShares Bitcoin Trust.
Tony Sycamore, a market analyst at IG, noted, “The appetite to gain exposure to Bitcoin is reaching insatiable levels. While Bitcoin may be overbought in the short term, the upward momentum is far from exhausted, and pullbacks are likely to find strong support, with a move towards $80,000 not out of the question.”
The bullish trend in Bitcoin has coincided with record-breaking performances in global stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq, alongside declining volatility measures in equities and foreign exchange markets.
Ether, Bitcoin’s closest competitor, has also experienced significant gains, fueled by speculation surrounding the potential introduction of exchange-traded funds. Ether is up over 50% year-to-date, trading at $3,649 at the time of reporting.
In regulatory news, a filing by the U.S. Securities and Exchange Commission revealed a further delay in the decision on an application for a spot ethereum exchange-traded fund submitted by asset manager BlackRock.
Additionally, Tether, a leading issuer of dollar-pegged stablecoins, announced that the total value of stablecoins issued has surpassed $100 billion, underscoring the growing prominence of stablecoin usage in the cryptocurrency ecosystem.
