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© Reuters. FILE PHOTO: Representations of the cryptocurrency Bitcoin are seen in this illustration dated August 10, 2022. REUTERS/Dado Ruvic/Illustration/Archive photo
By Ankur Banerjee
SINGAPORE (Reuters) – The price hit its highest level in two years on Tuesday, breaking $68,600 and hitting an all-time high as money continues to flow into the largest cryptocurrency by market value.
Bitcoin has gained 50% this year, and most of the increase has come in recent weeks as inflows into U.S.-listed Bitcoin funds surged.
On Tuesday, it was at $68,500 in Asian hours, hitting a session high of $68,828, just a touch away from the all-time high of $68,999.99 reached in November 2021.
Spot Bitcoin exchange-traded funds were approved in the US earlier this year. Their launch has paved the way for new large-scale investors and reignited the excitement and momentum reminiscent of the surge to record levels in 2021.
“It’s crypto mania 4.0, and I think if we continue to see relatively low volatility in bonds and interest rates, it could continue. There is definitely some irrational behavior creeping into the market,” said Kyle Rodda, senior market analyst at Capital.com.
Net inflows into the 10 largest U.S. spot bitcoin funds reached $2.17 billion in the week ended March 1, with more than half of that going into BlackRock’s iShares Bitcoin Trust (NYSE: ) flowed.
“The appetite for exposure to Bitcoin is reaching insatiable levels,” said Tony Sycamore, market analyst at IG.
“While Bitcoin has been overbought in the short term, the move is far from complete and dips are well supported, with a move towards $80,000 not out of the question.”
The rally coincided with a fall from records in stock indexes on the tech-heavy Nasdaq and a decline in volatility indicators in stocks and currencies.
Smaller rival Ether has been buoyed by speculation that it too might soon have exchange-traded funds to boost inflows, rising more than 50% this year to most recently traded at $3,649.
A regulatory filing on Monday revealed that the U.S. Securities and Exchange Commission has further delayed its decision on an application by asset manager BlackRock for its spot Ethereum exchange-traded fund.
Elsewhere, the number of dollar-pegged stablecoins issued has surpassed $100 billion, the crypto company said on its website on Monday. Tether issues a stablecoin designed to maintain a constant value of $1.
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