Bitcoin, world’s foremost cryptocurrency in terms of value, surged to a two-year peak, crossing the $66,000 threshold. This surge came as a substantial influx of funds propelled it tantalizingly close to its all-time highs.
Bitcoin surged to a peak of $66,319 during the session, marking a 6.4% increase to $66,254. At its current market value, Bitcoin sits approximately 4% below its record peak of $68,999.99, achieved in November 2021.
During the past 24 hours, data from CoinGecko indicates that the global cryptocurrency market capitalization experienced a notable surge of 3.6%, reaching approximately $2.54 trillion.
Bitcoin has seen a remarkable 50% increase in value throughout this year, with a significant portion of this growth occurring in recent weeks. This surge coincides with heightened inflows into US-listed Bitcoin funds.
Since the inception of US Bitcoin ETFs, significant net inflows totaling $7.35 billion have been invested by prominent fund names such as BlackRock Inc. and Fidelity Investments.
Despite substantial outflows of nearly $9 billion from Grayscale Bitcoin Trust following the listing of ETFs, traders remain unfazed. On Friday, there were net outflows of approximately $140 million, with GBTC experiencing around $490 million being withdrawn from the fund.
Other cryptos also rising
Amid Bitcoin’s surge, smaller-cap tokens, often referred to as meme coins, also experienced notable gains. Dogecoin saw an increase of nearly 20%, while Shiba Inu surged by 34% over the past 24 hours.
The second largest crypto token Ethereum surged 3.6% to $ 3,54. Other tokens known as altcoins, including Cardano and Solana, also were up Monday 6.8% and 3.3% respectively.
“This is a situation reminiscent of the 2021 bull run, with retail traders looking to make quick profits from rising prices in very volatile tokens,” Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, was quoted as saying by Bloomberg.
“The all-time highs in Bitcoin should get tested in the short-term, with the important 70,000 level providing strong resistance,” Mauron said.
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Published: 04 Mar 2024, 08:46 PM IST