Mar 4 2024: Bitcoin reached a two-year peak on Monday, surpassing $64,000 as a surge of investment propelled it tantalizingly close to its all-time highs.
Early in the Asian trading session, it peaked at $64,285, marking its highest point since late 2021. By the close of the session, it had gained 2%, reaching $63,850. Bitcoin’s previous record stands at $68,999.99, achieved in November 2021.
The leading cryptocurrency by market capitalization has experienced a 50% increase in value this year, with much of the ascent occurring in recent weeks, coinciding with a surge in trading volume for U.S.-listed bitcoin funds.
The approval of spot bitcoin exchange-traded funds in the United States earlier this year has facilitated the entry of new significant investors and reignited excitement and momentum reminiscent of the lead-up to the record levels seen in 2021.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, commented, “Investor confidence remains strong as the price continues to climb higher.”
Ether, a smaller competitor to bitcoin, has also seen gains fueled by speculation surrounding the possibility of exchange-traded funds. It has risen by 50% year-to-date, reaching $3,490 on Monday, just below its two-year highs reached last week.
The crypto rally has coincided with record-breaking performances in stock indexes such as Japan’s Nikkei, the S&P 500, and the technology-heavy Nasdaq, alongside decreasing volatility measures in equities and foreign exchange markets.
Brent Donnelly, trader and president at analysis firm Spectra Markets, remarked, “In a market where the Nasdaq is hitting all-time highs, cryptocurrencies are likely to perform strongly, with bitcoin serving as both a high-volatility tech proxy and a liquidity indicator. We seem to be witnessing a return to the market dynamics reminiscent of 2021, where optimism prevails and assets across the board are enjoying upward momentum.”