Bitcoin, the biggest digital currency, has hit its highest value in two years, soaring above $70,000. This big jump has made Bitcoin worth 50% more this year. It’s all because a lot of money has been going into funds that let people buy and sell Bitcoin in the U.S.
Earlier this year, the U.S. said it’s okay for people to trade Bitcoin in special funds. This has made it easier for big investors to get into Bitcoin. It’s like when people were really excited about Bitcoin in 2021.
People are feeling surer about Bitcoin as its price keeps going up. Markus Thielen from 10x Research in Singapore says that more and more money keeps coming in. In the week leading up to March 1, net flows into the top 10 U.S. spot Bitcoin funds reached $2.17 billion, with more than half going into BlackRock’s iShares Bitcoin Trust.
“The flows are not drying up as investors feel more confident the higher price appears to go,” said Markus Thielen.
Ether, a smaller competitor, has also seen a boost, rising 50% year-to-date. Speculation that it may soon have exchange-traded funds driving inflows has helped push its price to two-year highs. This rally has coincided with record-breaking performances on stock indexes from Japan’s Nikkei to the S&P 500 and tech-heavy Nasdaq.
As Brent Donnelly, trader and president at Spectra Markets, puts it, “In a world where Nasdaq is making new all-time highs, crypto is going to perform well as Bitcoin remains a high-volatility tech proxy and liquidity thermometer.” The market seems to be returning to the 2021-style where everything goes up and everyone is having fun.
“In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer,” said Brent Donnelly.
“We are back to a 2021-style market where everything goes up and everyone is having fun.”
Tony Sycamore, who studies market at IG, thinks that at the moment, with Bitcoin’s price nearing its highest ever which was $69,000 in November 2021, a lot of people are trying to get their hands on Bitcoin. He is also of the opinion that although at the moment it may seem as if Bitcoin is about to be overbought but the move and rise of Bitcoin is far from over and may likely see a rise of up to $80,000 as is it not out of the question whatsoever.
