Bitcoin has experienced a significant rally, reaching a new record high by breaking above $70,000, placing it above its previous all-time record. The cryptocurrency achieved a session high of $70,080, with its price last recorded at $69,161, breaking the record peak of $68,999.99 set in November 2021.
The surge in Bitcoin’s value, which has seen a 50% increase this year, is largely attributed to the recent weeks’ inflow into U.S.-listed bitcoin funds.
The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have played a pivotal role in attracting large investors, reigniting the enthusiasm and momentum that previously led to record highs in 2021. Markus Thielen, the head of research at crypto analytics house 10x Research in Singapore, noted the sustained investor interest as Bitcoin’s price climbs higher.
This rally in Bitcoin’s price coincides with significant inflows into the largest U.S. spot bitcoin funds, with $2.17 billion directed into these funds in the week leading to March 1. BlackRock’s iShares Bitcoin Trust notably received more than half of these inflows, according to data from LSEG.
Ether, Bitcoin’s smaller rival, has also seen substantial gains, buoyed by speculation regarding the potential approval of its own exchange-traded funds. Ether has risen 50% year-to-date, reaching two-year highs with a 2.6% increase on the day, trading at $3,518.
The cryptocurrency rally is occurring alongside record-breaking performances in global stock indexes, including Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq. This correlation is highlighted by Brent Donnelly, trader and president at analysis firm Spectra Markets, who remarked on the return of a 2021-style market where both traditional and crypto markets are experiencing upward trends, driven by new highs in tech and overall market liquidity.
This resurgence in Bitcoin and Ether’s prices underscores the growing integration and acceptance of cryptocurrencies within the broader financial landscape, particularly through the mechanism of ETFs, which have opened new avenues for institutional and large-scale investment in digital assets.
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