On Monday, Bitcoin reached a two-year high and broke $64,000 as a surge of capital brought it dangerously close to record highs.
It reached its best level since late 2021 at $64,285 early in the Asian day, and it closed the session 2% higher at $63,850. The highest point for bitcoin was $68,999.99, reached in November 2021.
This year, the largest cryptocurrency by market value has increased by 50%, with the majority of the gain occurring in the last few weeks due to a spike in trading volume for U.S.-listed bitcoin funds.
Earlier this year, US authorities legalised 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.
As investors gain confidence, the flows don’t seem to be stopping, according to Markus Thielen, head of research at Singapore-based cryptocurrency analytics firm 10x Research.
Rival, smaller ether, has benefited from conjecture that exchange-traded funds may soon be the source of inflows for it as well. Although it’s up 50% so far this year, Monday’s price of $3,490 was barely below two-year highs set last week.
Alongside the rally, stock index records have tumbled on the Nikkei (.N225) in Japan, opened a new tab on the S&P 500 (.SPX), opened a new tab on the tech-heavy Nasdaq (.IXIC), opened a new tab on volatility gauges in equities (.VIX), opened a new tab on foreign exchange (.DBCVIX), and opened a new tab on the S&P 500 (.SPX).
“As long as bitcoin continues to be a high-volatility tech proxy and liquidity thermometer, cryptocurrency will do well in a world where the Nasdaq is setting new all-time highs,” said Brent Donnelly, president and trader at Spectra Markets.
“The market is back to how it was in 2021, when everything is rising and people are having a good time.”
