Bitcoin surges beyond $68,000, approaches all-time high amid record inflows

Bitcoin has experienced a remarkable rally, hitting a two-year high on Monday and surpassing the $68,000 mark, bringing it close to its all-time high.

According to Reuters, the cryptocurrency reached a session peak of $68,580, with the latest recorded value standing at $68,161.

This surge follows a 50 per cent gain in Bitcoin's value this year, primarily driven by significant inflows into US-listed Bitcoin funds, especially in recent weeks.

"The flows are not drying up as investors feel more confident the higher price appears to go," remarked Markus Thielen, head of research at 10x Research in Singapore.

The approval and launch of spot bitcoin exchange-traded funds (ETFs) in the United States earlier this year have played a pivotal role in attracting new large investors.

This development has reignited enthusiasm and momentum, reminiscent of Bitcoin's run-up to record levels in 2021.

Net flows into the top 10 US spot bitcoin funds totalled $2.17 billion in the week ending March 1, with over half of this capital directed towards BlackRock's iShares Bitcoin Trust, according to data from LSEG.

The surge in Bitcoin's value has also influenced other cryptocurrencies, with Ethereum (ETH) experiencing a 50 per cent year-to-date increase.

On Monday, Ethereum traded at two-year highs, marking a 2.6 per cent daily increase and reaching $3,518.

This crypto rally coincides with records being shattered across traditional stock indexes, from Japan's Nikkei to the S&P 500 and the tech-heavy Nasdaq.

Simultaneously, volatility indicators in equities and foreign exchange have trended lower.

Brent Donnelly, trader and president at Spectra Markets, commented on the market dynamics, stating, "In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer."

He noted a return to a market reminiscent of 2021, where positive sentiment prevails, and all asset classes experience upward momentum.

(With inputs from Reuters)