Bitcoin rises: Bitcoin reached a two-year peak on Monday, surpassing $64,000 as a surge of capital propelled it towards record levels.
Reaching $64,285 early in the Asian trading session, Bitcoin hit its highest point since late 2021, ultimately settling 2 per cent higher for the session at $63,850. Its previous record high stands at $68,999.99, set in November 2021.
The leading cryptocurrency by market value has surged by 50 per cent this year, with the majority of gains occurring in recent weeks, coinciding with a surge in trading volume for US-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds earlier this year in the United States has paved the way for major inflows from new large investors, reigniting enthusiasm and momentum reminiscent of the surge to record levels in 2021.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.”
Ether, Bitcoin’s smaller rival, has also seen a surge in speculation amid expectations that it may soon have exchange-traded funds driving inflows.
Despite reaching $3,490 on Monday, up 50 per cent year-to-date, Ether remained just shy of its two-year highs reached last week.
The crypto rally has coincided with record-breaking performances across stock indexes, including Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq, while volatility indicators in equities and foreign exchange have trended lower.
Brent Donnelly, trader and president at analysis firm Spectra Markets, commented, “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. We are back to a 2021-style market where everything goes up and everyone is having fun.”
(With Reuters Inputs)
