In a remarkable surge, Bitcoin has scaled up to a two-year high, breaking the $64,000 barrier on Monday.
At $64,285, its highest since late 2021, the cryptocurrency stands 2% firmer at $63,850 and with a 50% gain this year, particularly in recent weeks, Bitcoin approaches its record high of $68,999.99 from November 2021.
The uptrend is attributed to heightened trading volume in U.S.-listed bitcoin funds, fueled by the approval of spot bitcoin exchange-traded funds earlier this year.
The influx of new large investors has reignited enthusiasm, resembling the momentum that preceded the 2021 record levels.
Markus Thielen, Head of Research at 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.”
This surge coincides with similar records being broken in global stock indexes, such as Japan’s Nikkei, the S&P 500, and the Nasdaq. Cryptocurrencies, particularly Bitcoin, are once again emerging as high-volatility tech proxies and liquidity thermometers in this bullish market.
Ether, Bitcoin’s smaller rival, is riding the wave of speculation surrounding potential approval for exchange-traded funds, resulting in a 50% year-to-date increase. While reaching $3,490 on Monday, it remained just shy of two-year highs achieved last week.
“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.” said Brent Donnelly, trader and president at analysis firm Spectra Markets.
Chioma Kalu
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