Bitcoin reached a two-year high on Tuesday, breaking above $68,600 and closing in on an all-time high as money continues to flow into the largest cryptocurrency by market value.
Bitcoin has increased by 50% this year, with the majority of the increase occurring in the previous few weeks as inflows into U.S.-listed bitcoin ETFs skyrocketed.
On Tuesday, it stood at $68,500 in Asian hours, having touched a session high of $68,828, a hair’s breadth away from its all-time high of $68,999.99 recorded in November 2021.
Spot Bitcoin exchange-traded funds were legalized in the United States earlier this year. Their launch paved the path for new large investors and reignited excitement and momentum, reminiscent of the run-up to record levels in 2021.
“It’s crypto craze 4.0, and I believe it will continue as long as bond and rate volatility remains relatively modest. “There is definitely some irrational behavior creeping into the market,” said Kyle Rodda, senior markets analyst at Capital.com.
According to LSEG statistics, net flows into the ten largest U.S. spot bitcoin funds totaled $2.17 billion in the week ending March 1, with BlackRock’s iShares Bitcoin Trust (IBIT.O) receiving more than half of that.
“The appetite to gain exposure to Bitcoin is reaching insatiable levels,” said Tony Sycamore, a market analyst with IG.
