Bitcoin, world’s foremost cryptocurrency in terms of value, surged to a two-year peak, crossing the $66,000 threshold. This surge came as a substantial influx of funds propelled it tantalizingly close to its all-time highs.
Bitcoin surged to a peak of $66,319 during the session, marking a 6.4% increase to $66,254. At its current market value, Bitcoin sits approximately 4% below its record peak of $68,999.99, achieved in November 2021.
During the past 24 hours, data from CoinGecko indicates that the global cryptocurrency market capitalization experienced a notable surge of 3.6%, reaching approximately $2.54 trillion.
Bitcoin has seen a remarkable 50% increase in value throughout this year, with a significant portion of this growth occurring in recent weeks. This surge coincides with heightened inflows into US-listed Bitcoin funds.
Since the inception of US Bitcoin ETFs, significant net inflows totaling $7.35 billion have been invested by prominent fund names such as BlackRock Inc. and Fidelity Investments.
Despite substantial outflows of nearly $9 billion from Grayscale Bitcoin Trust following the listing of ETFs, traders remain unfazed. On Friday, there were net outflows of approximately $140 million, with GBTC experiencing around $490 million being withdrawn from the fund.
“With nine ETFs and a far greater access than any of the previous bull runs, Bitcoin is scaling heights which were previously unprecedented. The number of Bitcoin produced is 900 daily, and just last Wednesday ETFs consumed about 10000 of them, indicating a huge demand. Thus there is better liquidity in the market. However, ever since the ETF anticipation started building, the market was confident in its ability to fuel BTC prices,” said Rajagopal Menon, VP, WazirX.
Menon further added, “The Bitcoin halving is a month away and it will reduce the supply of new Bitcoins to 656,250. Investors are trying to make the best of the situation and the market optimism is at its peak. Once BTC crossed its all time high last week, it indicated a massive rally. However, we should be wary of sideways movements and corrections which is a normal part of the cycle.”
Other cryptos also rising
Amid Bitcoin’s surge, smaller-cap tokens, often referred to as meme coins, also experienced notable gains. Dogecoin saw an increase of nearly 20%, while Shiba Inu surged by 34% over the past 24 hours.
The second largest crypto token Ethereum surged 3.6% to $ 3,54. Other tokens known as altcoins, including Cardano and Solana, also were up Monday 6.8% and 3.3% respectively.
“This is a situation reminiscent of the 2021 bull run, with retail traders looking to make quick profits from rising prices in very volatile tokens,” Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, was quoted as saying by Bloomberg.
“The all-time highs in Bitcoin should get tested in the short-term, with the important 70,000 level providing strong resistance,” Mauron said.
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Published: 04 Mar 2024, 08:46 PM IST