Bitcoin nears record high, hits $68k

Bitcoin reached a two-year high on Tuesday, surpassing $68,600 and nearing its all-time high due to increased investment in the leading cryptocurrency, Reuters reported.

This year, Bitcoin has seen a 50 per cent increase, with the majority of the surge occurring in recent weeks due to increased inflows into US-listed Bitcoin funds.

On Tuesday, during Asian trading hours, Bitcoin hit a session high of $68,828, just shy of its all-time high of $68,999.99 set in November 2021. 

The approval of spot Bitcoin exchange-traded funds in the US earlier this year has paved the way for significant investors and reignited a momentum similar to the record-breaking surge in 2021.

Kyle Rodda, a senior markets analyst at Capital.com, refers to this as crypto mania 4.0 and suggests that if bond and rate volatility remain low, the trend could continue, despite signs of irrational behaviour in the market. 

In the week leading up to March 1, the 10 largest US spot Bitcoin funds saw net inflows of $2.17 billion, with over half going into BlackRock’s iShares Bitcoin Trust, according to LSEG data.

Market analyst Tony Sycamore noted a growing appetite for Bitcoin exposure and predicted that any price dips would be well supported, with a rise towards $80,000 possible.

This Bitcoin rally coincides with record-breaking performances on various stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq.

Meanwhile, Ether has seen a 50 per cent increase this year due to speculation about potential exchange-traded funds.

However, the US Securities and Exchange Commission has delayed its decision on BlackRock’s application for a spot Ethereum exchange-traded fund. In other news, Tether’s dollar-pegged stablecoins have surpassed $100 billion in issuance.