Bitcoin reaches a two-year high, nearing record levels as inflows into U.S.-listed bitcoin funds surge. Ethereum also sees gains amidst speculation of exchange-traded funds, reflecting a broader market rally reminiscent of 2021’s bullish sentiment.
4 March 2024 – Bitcoin soared to a two-year high on Monday, surpassing $65,000 and nearing its record level, driven by a surge in inflows into U.S.-listed bitcoin funds. The cryptocurrency hit a session peak of $65,537 in European trading, marking a 4% increase to $65,045, with a 50% gain for the year, largely seen in recent weeks.
The approval of spot bitcoin exchange-traded funds earlier this year in the United States has attracted new large investors, igniting enthusiasm reminiscent of the 2021 bull run. Markus Thielen, head of research at 10x Research, noted the sustained investor confidence amid rising prices.
With net flows into the top 10 U.S. spot bitcoin funds reaching $2.17 billion in the week ending March 1, BlackRock’s iShares Bitcoin Trust saw a significant portion of inflows. Meanwhile, Ethereum, Bitcoin’s smaller rival, is riding on speculation of forthcoming exchange-traded funds, witnessing a 50% increase year-to-date and trading at two-year highs.
The cryptocurrency rally coincides with record-breaking performances across global stock indexes like Japan’s Nikkei, the S&P 500, and the Nasdaq, while volatility indicators in equities and foreign exchange have declined. Brent Donnelly, trader and president at Spectra Markets, highlighted Bitcoin’s role as a high-volatility tech proxy and liquidity gauge in the current market environment, echoing sentiments of a 2021-style market resurgence where “everything goes up” and optimism abounds.
