Bitcoin surges to two-year high, nears record levels

WEB DESK: In an impressive rally on Monday, Bitcoin soared to a two-year high, surpassing the $65,000 mark, propelled by a surge in investments that brought it tantalisingly close to its previous record levels.

During early European trading, the cryptocurrency reached a session high of $65,537, building on its recent two-year peak in Asian markets.

At the time of reporting, Bitcoin was up by 4 per cent, trading at $65,045, demonstrating a substantial gain since its record high of $68,999.99 in November 2021.

This surge in value represents a remarkable 50 per cent increase in the cryptocurrency’s market value over the course of this year.

Notably, the majority of this surge occurred in the past few weeks, coinciding with a significant influx of funds into US-listed bitcoin funds.

The approval of spot bitcoin exchange-traded funds in the United States earlier this year played a pivotal role in this ascent.

The launch of these funds not only attracted new large-scale investors but also reignited enthusiasm and momentum, reminiscent of the bull run leading to the record levels witnessed in 2021.

Markus Thielen, Head of Research at crypto analytics house 10x Research in Singapore, commented on the sustained investor confidence, stating, “The flows are not drying up as investors feel more confident the higher price appears to go.”

Recent data from LSEG revealed that net flows into the ten largest US spot bitcoin funds reached an impressive $2.17 billion in the week leading up to March 1.

Over half of this substantial amount found its way into BlackRock’s iShares Bitcoin Trust, underscoring the growing interest and confidence among investors.

In parallel, Bitcoin’s smaller counterpart, Ether, has experienced a notable surge. Fueled by speculation that it may soon have its own exchange-traded funds driving inflows, Ether has seen a 50 per cent increase in value year-to-date.

As of Monday, it was trading at two-year highs, up by 2.6 per cent on the day at $3,518.

This crypto surge aligns with record-breaking performances in traditional stock indexes, including Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq.

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