On Monday, the price of Bitcoin surged to its highest point in two years, surpassing $65,000. This increase in value came as a significant amount of money flowed into Bitcoin, bringing it very close to its all-time high level.
The price hit a session high of $65,537 early in Europe, having already hit a new two-year high in Asian trading. It was last up 4% at $65,045. Bitcoin hit a record $68,999.99 in November 2021.
The biggest cryptocurrency, based on its market value, has increased by 50% this year. The majority of this growth happened in the last few weeks, especially as investments into U.S.-listed bitcoin funds have significantly increased.
Earlier this year, spot bitcoin exchange-traded funds got approval in the United States. Their introduction has attracted new big investors and sparked renewed excitement and momentum similar to what happened before bitcoin reached its highest levels in 2021.
“The flows are not drying up as investors feel more confident the higher price appears to go,” said Markus Thielen, head of research at crypto analytics house 10x Research in Singapore.
Net flows into the 10 largest U.S. spot bitcoin funds reached $2.17 billion in the week to Mar 1, with more than half of that going into BlackRock’s iShares Bitcoin Trust (IBIT.O), opens new tab, according to LSEG data.
The smaller competitor, Ether, has gained attention due to speculation that it might also soon have exchange-traded funds attracting investments. Its value has increased by 50% since the beginning of the year, and as of Monday, it reached its highest point in two years, rising by 2.6% to $3,518.
