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© Reuters
Investing.com – Prices rose above key levels on Tuesday, largely driven by signs of continued inflows into spot exchange-traded funds launched earlier this year.
The world’s largest cryptocurrency rose 8.1% to $55,621.5 at 8:55 p.m. ET (01:55 GMT), trading at its highest level in more than two years. The token was now less than $14,000 away from a lifetime high reached during a bull run in late 2021.
The world’s second-largest cryptocurrency rose 3.6% to $3,217.48 – its highest level since the start of 2022.
Gains in Bitcoin and the broader crypto market came as a report from digital asset manager Coinshares showed that crypto investment products recorded capital inflows for the fourth consecutive week.
The report showed that digital asset investment products recorded $598 million in weekly inflows in the week ended February 23, with Bitcoin ETFs accounting for the lion’s share of inflows.
Bitcoin products saw $570 million in inflows, with BlackRock’s iShares Bitcoin Trust (NASDAQ:) recording $543.5 million in inflows. This largely offset the Grayscale Bitcoin Trust (BTC) (NYSE:)’s heavy outflows as the trust struggled with a number of new entrants into the Bitcoin ETF space.
Coinshares also noted that short interest in Bitcoin increased amid recent price increases. The token is trading up around 24% so far in 2024, having more than doubled in price by 2023.
Bitcoin also received support from MicroStrategy Incorporated (NASDAQ:) – the token’s largest corporate holder, which announced that it had recently purchased 3,000 tokens for approximately $155 million.
Bitcoin’s steep rally this year has been largely driven by the recent US approval of ETFs that directly track the price of the cryptocurrency.
But while the approvals drew a lot of institutional capital into the token, retail trading volumes remained relatively low, especially as the crypto industry grapples with a massive loss of confidence following a series of high-profile scandals and bankruptcies.
Trading volumes also remained at a fraction of the highs seen in 2021 and early 2022, according to Investing.com data.
Nevertheless, cryptocurrency price increases also impacted cryptocurrency stocks. No. 1 US exchange Coinbase Global Inc (NASDAQ:), miner Marathon Digital Holdings Inc (NASDAQ:) and MicroStrategy Incorporated (NASDAQ:) rose 15% to 22% on Monday.
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