Bitcoin surged to a two-year high, nearing $64,000 fueled by a wave of investor interest, reaching $64,285 early in the Asian trading day, its highest level since late 2021 before closing 2% higher at $63,850.
Bitcoin, the largest cryptocurrency by market value, has increased in value by 50% this year, with significant gains in recent weeks coinciding with a surge in trading volume for bitcoin funds listed in the United States, according to Reuters.
The approval of spot bitcoin exchange-traded funds earlier this year in the United States has facilitated the entry of new large investors and reignited enthusiasm, reminiscent of the rally to record levels in 2021.
According to Markus Thielen, head of research at Singapore-based cryptocurrency analytics firm 10x Research, "The flows are not drying up as investors feel more confident the higher price appears to go."
In response to rumours that exchange-traded funds might soon be attracting inflows, Ether, a smaller rival of Bitcoin, has also seen gains.
Just shy of its two-year highs reached last week, ether is up 50% year to date as of Monday, reaching $3,490.
The global stock indexes, including the tech-heavy Nasdaq, the S&P 500, and Japan's Nikkei, have all seen record-breaking performances in tandem with the cryptocurrency market's surge. Measures of volatility in foreign exchange and stocks have also declined.
Brent Donnelly, trader and president at analysis firm Spectra Markets, commented, "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 added, "We are back to a 2021-style market where everything goes up and everyone is having fun."
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