Bitcoin hits a 2-year high on Monday, breaking the level of $64,000 as a massive wave of money got into the cryptocurrency and carried it within a slight difference from record levels.
It touched beyond $64,285 in the Asian day, the highest point since late 2021, and last 2% firmer for the session at $63,850. The highest record Bitcoin had made to date was $68,999.99 in November 2021.
Bitcoin, being the largest cryptocurrency by market value, is being widely traded across the world and can create a major impact on the pockets of those making investments in it. It has gained almost 50% of market value this year, where most of the increase was seen in the last few weeks with trading volumes surging for US-listed Bitcoin funds.
With the launch spot bitcoin exchange traded funds earlier this year, which were approved by the SEC, the doors of investment got opened for new investors and rejuvenated the momentum and enthusiasm to break the record levels made in 2021.
Markus Thielen, head of research at crypto analytics house 10x Research in Singapore said that, “The flows are not drying up as investors feel more confident, higher the price appears to go.”
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Bitcoin Surge Helps Crypto Market
As Bitcoin hits its 2-year high levels and continues to surge for the past few weeks, the investors are really optimistic about the cryptocurrency market as a whole, which is pushing the market to record highs.
Bitcoin’s smaller rival, ether has joined the bandwagon and is under the speculation that it may too soon get exchange traded funds during the current inflows. Just like Bitcoin, it is also up by 50% this year at $3,490 just shy of the two-year high made last week.
The current rally has come together with record tumbling in the stock markets across the globe, from Nikkei (.N225) of Japan to the S&P 500 (.SPX) and tech-concentrated Nasdaq (.IXIC) of the US. While the volatility gauges in equities (.VIX) and foreign exchange markets(.DBCVIX) got into a lower circuit.
Trader and president at analysis firm Spectra Markets, Brent Donnel, said that, “In a world where Nasdaq is making new all-time highs, crypto is certainly going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer.”
He added that, “We are back to a 2021-style market where everything goes up and everyone is having fun.”
However, some analysts suggest that though the crypto market has performed really well in the past few weeks, it’s likely not going to break the earlier record of $69,000 made in November 2021.
Matt Simpson, senior market analyst at City Index said that, “When I look at the Bitcoin futures chart, I see a tired market that doesn’t quite have the willpower to reach 69k right now.” he explained that, “I’m not saying this is a market to short, but I would be wary of going long at these highs.”
