Bitcoin, the leading cryptocurrency by market value, achieved a significant milestone by reaching a two-year high, surpassing the $66,000 mark. This surge was fueled by a substantial increase in investment, bringing it closer to its historical peak.
During the session, Bitcoin saw a surge to a peak of $66,319, representing a 6.4% increase to $66,254. With this surge, Bitcoin is currently trading approximately 4% below its all-time high of $68,999.99, recorded in November 2021.
In the last 24 hours, according to data from CoinGecko, the global cryptocurrency market capitalization has witnessed a significant surge of 3.6%, reaching approximately $2.54 trillion.
Bitcoin’s value has surged by an impressive 50% this year, with a notable portion of this growth occurring in recent weeks. This surge aligns with increased inflows into US-listed Bitcoin funds.
Since the introduction 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 appear undeterred. On Friday, there were net outflows of approximately $140 million, with GBTC experiencing around $490 million being withdrawn from the fund.
Rajagopal Menon, VP at WazirX, commented, “With nine ETFs and far greater access than in previous bull runs, Bitcoin is reaching unprecedented heights. The production of Bitcoin stands at 900 daily, and just last Wednesday ETFs consumed about 10,000 of them, indicating significant demand. This has led to improved liquidity in the market. However, ever since the anticipation of ETFs began, the market has been confident in its ability to drive BTC prices.”
Menon further elaborated, “The Bitcoin halving is just a month away, which will reduce the supply of new Bitcoins to 656,250. Investors are seizing this opportunity, leading to peak market optimism. Last week’s breakthrough of BTC’s all-time high signaled a massive rally. However, we must remain cautious of sideways movements and corrections, which are normal parts of the cycle.”
In addition to Bitcoin’s surge, smaller-cap tokens, often referred to as meme coins, also witnessed notable gains. Dogecoin experienced an increase of nearly 20%, while Shiba Inu surged by 34% over the past 24 hours.
Ethereum, the second-largest crypto token, surged by 3.6% to reach $3,540. Other altcoins, including Cardano and Solana, also saw gains of 6.8% and 3.3% respectively on Monday.
Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, commented on the current market situation, stating, “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,” as quoted by Bloomberg.
Mauron further added, “The all-time highs in Bitcoin should get tested in the short-term, with the important 70,000 level providing strong resistance.”