Tuesday saw Bitcoin reach a two-year high, surpassing $68,600 and closing in on the all-time high as investors continue to pour money into the biggest cryptocurrency by market value. This year, bitcoin has increased by 50%, with the majority of that growth occurring in the previous few weeks due to a sharp increase in inflows into U.S.-listed bitcoin funds. It achieved a session high of $68,828 on Tuesday during Asian hours, just shy of the all-time high of $68,999.99 it set in November 2021.
Earlier this year, US authorities legalized spot bitcoin exchange-traded funds. Their introduction provided access for new major investors and has sparked renewed energy and enthusiasm similar to the surge to all-time highs in 2021. It’s cryptocurrency frenzy 4.0, and assuming bond and rate volatility stay relatively low, I believe it will continue. The market is undoubtedly exhibiting some illogical behavior, according to Capital.com senior markets expert Kyle Rodda. According to LSEG statistics, net flows into the top 10 U.S. spot bitcoin funds were $2.17 billion in the week ending March 1, with BlackRock’s iShares Bitcoin Trust receiving more than half of that amount.
“While Bitcoin overbought in the short term, the move is far from done, and dips will be well supported with a move towards $80,000 not out of the question.” The surge has coincided with record lows on stock indices, including the tech-heavy Nasdaq, the S&P 500, and Japan’s Nikkei, as well as declining volatility indicators in foreign exchange and stocks. Rival ether, which is smaller and currently trades at $3,649, has benefited from predictions that exchange-traded funds may eventually drive inflows. It has increased by more than 50% year to date.
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