Bitcoin Approaches All-time Peak, Crosses $68,000
World's most valuable cryptocurrency Bitcoin has soared to a two-year peak, going beyond USD 68,600 and edging closer to its all-time high. The surge comes amid a notable influx of capital into US-listed bitcoin funds, particularly in the last few weeks.
Investors' enthusiasm has been reignited by the approval and launch of spot bitcoin exchange-traded funds in the United States earlier this year, opening doors for new large investors.
Market analysts are observing what they describe as "crypto mania 4.0," suggesting a potential element of irrational behaviour creeping into the market. The recent inflow into the top ten US spot bitcoin funds totaled USD 2.17 billion in the week ending 1 March, with a significant portion allocated to BlackRock's iShares Bitcoin Trust.
The growth in Bitcoin's value coincides with remarkable performances across various stock indexes, including Japan's Nikkei, the S&P 500 and the Nasdaq. Additionally, volatility measures in equities and foreign exchange have seen a decline, further fueling investor confidence in cryptocurrencies.
Ether, Bitcoin's smaller rival, has also experienced a surge, gaining over 50 per cent in value this year amid speculation about the potential introduction of exchange-traded funds. However, the US Securities and Exchange Commission's delay in deciding on BlackRock's application for a spot ethereum exchange-traded fund adds uncertainty to Ether's future trajectory.
