[ad_1]
© Reuters
Investing.com – Prices broke through key levels in Asian trading on Tuesday, now less than $1,000 below a record high hit during the peak of a 2021 bull run.
The world’s largest cryptocurrency rose as much as 8.5% to an over two-year high of $68,450.9 and was trading well above the $68,000 mark at 8:05 p.m. ET (01:05 GMT). It was now close to the record high of $68,999 reached at the end of 2021.
Bitcoin’s gains were primarily driven by steady capital inflows into the token, especially after the approval of several US exchange-traded funds that directly track the token’s price.
Its correlation with technology stocks also contributed to the token’s recent gains as markets awaited an impending halving in the rate at which new Bitcoin is generated – an event that is expected to tense markets.
Data from digital asset manager CoinShares showed that Bitcoin-linked investment products recorded a fifth consecutive week of capital inflows in the week ended March 4, totaling $1.7 billion. While short positions on the token increased, U.S.-listed ETFs tracking Bitcoin, particularly offerings from BlackRock (NYSE:), (NASDAQ:) and Fidelity (NYSE:), saw the lion’s share of inflows.
On the other hand, Grayscale (NYSE:) continued to see sustained outflows as the company struggled with increasing competition in the Bitcoin ETF space.
Sentiment towards Bitcoin was also boosted by Microstrategy (NASDAQ:), the token’s largest corporate holder, which announced it would raise $600 million in debt to buy more Bitcoin.
The world’s second-largest cryptocurrency rose 4% to a two-year high of $3,624.03 as focus continued on spot ETF approval for the token. Crypto-linked stocks also rallied on Wall Street.
Still, crypto trading volumes – particularly for Bitcoin and Ethereum – remained well below post-2022 bull market highs, data from Investing.com showed.
While Bitcoin has risen more than 400% since its low point reached in late 2022, retail interest in cryptocurrencies has remained weak following several high-profile fraud cases and bankruptcies over the past two years.
Following Bitcoin’s recent rally, allegations of price manipulation, particularly by stablecoin issuers, have been circulating, and relatively low trading volumes have also been linked to the astronomical price rise.
[ad_2]
Source link
