Bitcoin surged to a two-year peak on Monday, smashing through the $64,000 mark and inching close to its record high. Reaching $64,285 in Asian trading, the cryptocurrency marked its highest value since late 2021, currently standing at $63,850, up 2% for the day. Bitcoin’s previous record was $68,999.99 in November 2021. This year alone, it has witnessed a 50% surge, with a significant spike in the last few weeks, attributed to increased trading volume in U.S.-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds in the United States earlier this year played a pivotal role in attracting new substantial investors, rekindling enthusiasm, and driving the recent momentum. Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted that investor confidence remains high as the price continues to climb.
Ethereum, a smaller contender, has also experienced a 50% year-to-date increase, staying just below its two-year highs at $3,490 on Monday. Speculation around potential exchange-traded funds for Ethereum has contributed to its recent gains. The cryptocurrency rally aligns with record-breaking performances in traditional stock indexes like Japan’s Nikkei, the S&P 500, and the Nasdaq, amid decreasing volatility indicators in equities and foreign exchange.
Analysts are drawing parallels to the exuberant market trends of 2021, as Bitcoin reasserts itself as a high-volatility tech proxy and liquidity gauge in a buoyant market.
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