Bitcoin Surpasses $65,000

Bitcoin has surged to a two-year high, surpassing $65,000 and getting closer to its record levels. Reaching a session peak of $65,537 during European trading after already hitting a new high in Asian markets, it settled at $65,045, up 4%. The cryptocurrency hit its all-time high of $68,999.99 in November 2021.

This year, Bitcoin has seen a 50% increase, with a significant surge in recent weeks attributed to inflows into US-listed bitcoin funds. The approval of spot bitcoin exchange-traded funds in the US earlier in the year facilitated the entry of new large investors, reigniting enthusiasm and momentum akin to the 2021 bull run.

Markus Thielen, head of research at 10x Research in Singapore, noted that investor confidence remains high as Bitcoin’s price continues to rise. In the week ending March 1, net inflows into the top ten US spot bitcoin funds amounted to $2.17 billion, with a significant portion directed towards BlackRock’s iShares Bitcoin Trust.

Ether, Bitcoin’s smaller counterpart, has also experienced gains, rising 50% year-to-date and reaching two-year highs. Speculation surrounding the potential approval of ether exchange-traded funds has contributed to increased investor interest.

The cryptocurrency rally coincides with record-breaking performances in stock indexes like Japan’s Nikkei, the S&P 500, and the Nasdaq, while volatility indicators in equities and foreign exchange markets have trended downwards. Analysts like Brent Donnelly of Spectra Markets suggest that Bitcoin’s performance aligns with a broader market trend reminiscent of the exuberance seen in 2021, characterized by rising asset prices across various sectors.

Follow INCPAK on Facebook / Twitter / Instagram for updates.