Bitcoin soared to a two-year high on Monday, surpassing $65,000 as a wave of funds nears record levels.
Prices hit an early trading high of $65,537 in Europe, and have already hit a two-year high in Asian trading.
The previous price was $65,045, up 4%. Bitcoin hit an all-time high of $68,999.99 in November 2021.
The largest cryptocurrency by market capitalization is up 50% this year, with most of the gains occurring in the past few weeks as inflows to U.S.-listed Bitcoin funds surged.
Spot Bitcoin exchange-traded funds were approved in the US earlier this year.
Their launch paved the way for new large-scale investors and reignited enthusiasm and momentum reminiscent of 2021’s rally to record levels.
“Flows have not dried up because investors are confident that prices will rise,” said Markus Thielen, head of research at crypto analysis firm 10x Research in Singapore.
Net inflows into 10 U.S. spot Bitcoin funds reached $2.17 billion in the week ending March 1, with more than half of that coming to BlackRock’s iShares Bitcoin Trust, according to LSEG data. There was an inflow into the country.
Smaller rival Ether has also soared on speculation that exchange-traded funds (ETFs) could soon drive inflows.
It has risen 50% year-to-date and was trading at a two-year high by Monday, rising 2.6% on the day to $3,518.
The rally coincided with record plunges in stock indexes from Japan’s Nikkei Stock Average to the S&P 500 to the tech-heavy Nasdaq, and declines in stock and foreign exchange volatility indicators.
“Bitcoin remains a volatile technology proxy and liquidity thermometer in a world where the Nasdaq is at new all-time highs,” said Brent Donnelly, a trader and president at analytics firm Spectra Markets. Therefore, virtual currencies are likely to perform well.”
“We’re back to a 2021-style market where everything is up and everyone is having fun.”
