Bitcoin soared to a two-year high, breaking above the $65,000 mark as it hit a session peak of $65,537 during early European trading, following a new two-year high achieved in Asian markets. Currently, the largest cryptocurrency by market value is up 4% at $65,045, marking a significant rise.
This rally marks a 50% increase in Bitcoin's value this year, with much of the surge occurring in recent weeks, particularly driven by substantial inflows into US-listed bitcoin funds. The approval and launch of spot bitcoin exchange-traded funds in the United States earlier this year have attracted new large investors, reigniting enthusiasm and momentum reminiscent of the 2021 record levels.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.” In the week leading up to March 1, net flows into the top 10 US spot bitcoin funds totaled $2.17 billion, with over half of that amount directed towards BlackRock’s iShares Bitcoin Trust, according to LSEG data.
Ether, Bitcoin's smaller rival, has also experienced a surge, riding on speculation of potential exchange-traded funds, leading to increased inflows. Year-to-date, Ether is up 50%, reaching two-year highs and trading at $3,518 on Monday, marking a 2.6% increase for the day. This rally coincides with record-breaking performances in stock indexes such as Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq, while volatility measures in equities and foreign exchange have declined.
Brent Donnelly, trader and president at analysis firm Spectra Markets, remarked, “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.” He added, “We are back to a 2021-style market where everything goes up and everyone is having fun.”