Bitcoin Nears Record High, Surpassing $68,000 Amid Renewed Investor Enthusiasm
Bollywoodfever, March 4: Bitcoin reached a two-year high, soaring past $68,600 and approaching it’s all-time high, as the cryptocurrency market experiences a surge in investment.
The leading digital currency by market value has seen a 50% increase this year, with a significant portion of the growth occurring in recent weeks due to increased inflows into U.S.-listed bitcoin funds.
During Asian trading hours on Tuesday, Bitcoin’s price hovered around $68,500, briefly touching $68,828, just shy of its November 2021 peak of $68,999.99.
The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have attracted new large-scale investors, reigniting the enthusiasm and momentum that led to record highs in 2021.
Kyle Rodda, a senior markets analyst at Capital.com, commented on the current market dynamics, suggesting that the ongoing “crypto mania 4.0” could persist if bond and rate volatility remains low, despite signs of irrational behavior in the market.
Investment in the 10 largest U.S. spot bitcoin funds surged, with net flows reaching $2.17 billion in the week leading up to March 1.
BlackRock’s iShares Bitcoin Trust notably attracted over half of these inflows, according to data from LSEG.
Market analyst Tony Sycamore from IG highlighted the growing demand for Bitcoin exposure, suggesting that while the cryptocurrency may be overbought in the short term, the upward trend is far from over, with potential for the price to reach $80,000.
This rally coincides with record-breaking performances across global stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq, alongside lower volatility in equity and foreign exchange markets.
Ether, Bitcoin’s smaller counterpart, has also benefited from speculation about potential ETFs driving investment, recording a 50% increase this year and trading at $3,649.
In regulatory news, the U.S. Securities and Exchange Commission has postponed its decision on BlackRock’s application for a spot ethereum exchange-traded fund. Meanwhile, Tether announced that the issuance of its dollar-pegged stablecoins has surpassed $100 billion, maintaining its peg to a constant value of $1, underscoring the growing interest and diversification within the cryptocurrency sector.
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