Bitcoin shoots past $68,000 on Tuesday as it sits near its two-year high peak, breaking above $68,600 and creeping up on all time high as money keeps gushing in the current cryptocurrency mania.
Bitcoin has already gained 50% of market value this year and most of the rise has come in the last couple of weeks, starting from this massive pour of investments in the US-listed bitcoin funds since the start of February.
On Tuesday, Bitcoin was trading around $68,500 in Asian hours, having reached a session of $68,828, just shy of its all-time high of $68,999.99 it made in November 2021.
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The Cryptocurrency Mania
Spot Bitcoin-exchange traded funds were approved by SEC earlier this year, after which the gates for investments were opened to small and large investors who have rejuvenated the momentum and enthusiasm to reach 2021 levels.
Kyle Rodda, a senior market analyst at Capital.com. Viewed the situation as irrational by saying that, “It’s crypto mania 4.0, and I think if we continue to see fairly low bond and rate volatility, it could keep going. There’s definitely something of an irrational behavior creeping into the market.”
In the past couple of weeks, net inflows into the 10 largest US listed spot Bitcoin funds have reached unbelievable levels of $2.17 billion a week, with more than 50% share going into BlackRock’s iShares Bitcoin (IBIT.O).
Tony Sycamore, a market analyst at IG also gave similar views on the current situation as he said that, “The appetite to gain exposure to Bitcoin is reaching insatiable levels. While Bitcoin has been overbought in the short term, the move is far from done, and dips will be well supported with a move towards $80,000 not out of the question.”
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The Asian Bulls
As Bitcoin shoots past the levels of $68,000 and is eyeing to breach its all-time high levels of $69,000; it is viewed that most of the cryptocurrency mania is led by the Asian bulls.
According to the crypto exchange data from the Block, traders in China, South Korea, Japan, and other Asian countries are leading the crypto rally with roughly 70% of trading volumes coming from Asia. A similar trend was seen in 2021, when the records were broken the previous time.
The data shows that Asian traders accounted for $791 billion worth of Bitcoin traded in the month of February, while North American investors lagged way behind with just $113 billion.
China, though has been banned from trading, has been grappled by the FOMO as many small investors are jumping in the crypto, while being frustrated by a slow stock market. Bitcoin searches on popular messaging app WeChat reached an incredible 12 times in February.
Traders are also jumping into the world’s most valuable cryptocurrency to reap the benefits of “halving event” due in April, which could potentially reduce the supply of Bitcoin and could push the prices further up.