Updated March 5th, 2024 at 07:24 IST

Bitcoin soars past $68,000, inches record high amid investor enthusiasm

Bitcoin last touched record heights in November 2021, hitting an impressive $68,999.99.

Reported by: Business Desk
Bitcoin | Image:Unsplash
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Bitcoin rally: Bitcoin soared to a remarkable two-year peak on Monday, breaching the $68,000 mark amid a surge of investment activity, edging close to its all-time high. The cryptocurrency reached an intraday high of $68,580 before settling at $68,161. Bitcoin last touched record heights in November 2021, hitting an impressive $68,999.99.

The surge in Bitcoin's value, marking a 50 per cent increase since the beginning of the year, has predominantly occurred over the past few weeks, coinciding with a substantial influx of funds into US-listed bitcoin funds. The approval and subsequent launch of spot bitcoin exchange-traded funds in the United States earlier this year have paved the way for larger institutional investors to enter the market, reigniting enthusiasm and momentum reminiscent of the cryptocurrency's previous surge in 2021.

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Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, remarked, "The flows are not drying up as investors feel more confident the higher price appears to go." According to data from LSEG, net flows into the ten largest US spot bitcoin funds surged to $2.17 billion in the week ending March 1, with over half of the inflows directed towards BlackRock's iShares Bitcoin Trust (IBIT.O).

Ether, Bitcoin's main competitor, has also experienced a substantial uptick in value, riding on speculation surrounding the potential approval of exchange-traded funds. Ether has seen a 50 per cent increase in value year-to-date and on Monday was trading at two-year highs, registering a 2.6 per cent increase to reach $3,518.

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The bullish trend in cryptocurrencies coincides with record-breaking performances in global stock indexes, including Japan's Nikkei (N225), the S&P 500 (SPX), and the tech-heavy Nasdaq (IXIC). The rally in cryptocurrencies has been mirrored by declining volatility in equities and foreign exchange markets.

Brent Donnelly, trader and president at analysis firm Spectra Markets, commented, "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. We are back to a 2021-style market where everything goes up and everyone is having fun."

(With Reuters inputs.)

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Published March 5th, 2024 at 07:24 IST