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Bitcoin Surges Past $68,000, May Hit Record High as Money Keeps Rushing In

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Staff Writer, TLR

Published on March 5, 2024, 12:23:28

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Bitcoin, cryptocurrency, crypto, stock, investment

Bitcoin surged to a two-year high on Tuesday, surpassing $68,600 and closely approaching its all-time peak as investment pours into the leading cryptocurrency.

This year, Bitcoin has seen a 50 per cent increase, with a significant portion of the surge occurring in recent weeks, coinciding with a surge in investments into US-listed bitcoin funds.

During Asian trading hours on Tuesday, Bitcoin hovered around $68,500, reaching 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 earlier this year in the United States paved the way for new institutional investors, reigniting excitement and momentum similar to the surge seen in 2021.

"It's crypto mania 4.0, and I think if we continue to see fairly low bond and rate volatility, it could keep going. There's definitely something of an irrational behavior creeping into the market," Kyle Rodda, senior markets analyst at Capital.com, was quoted as saying by Reuters.

According to London Stock Exchange Group (LSEG) data, net inflows into the top 10 US spot bitcoin funds totalled $2.17 billion in the week ending March 1, with more than half of that directed towards BlackRock's iShares Bitcoin Trust.

"The appetite to gain exposure to Bitcoin is reaching insatiable levels. While Bitcoin may be overbought in the short term, the upward momentum is far from over, and declines will likely be well supported, with a move towards $80,000 not out of the question," Tony Sycamore, a market analyst at IG, told Reuters.

This rally coincides with record-breaking performances on stock indexes such as Japan's Nikkei, the S&P 500, and the tech-heavy Nasdaq, along with decreasing volatility indicators in equities and foreign exchange markets.

Ethereum, Bitcoin's smaller counterpart, has also seen significant gains amid speculation surrounding the potential approval of exchange-traded funds. Ethereum is up over 50 per cent for the year, currently trading at $3,649.

On Monday, a regulatory filing revealed that the US Securities and Exchange Commission has further delayed its decision on an application by asset manager BlackRock for a spot ethereum exchange-traded fund.

Additionally, Tether, a cryptocurrency company, announced that the number of dollar-pegged stablecoins issued by Tether has surpassed $100 billion. Tether issues stablecoins designed to maintain a constant value of $1.

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