Bitcoin neared its all-time record high on Monday after crossing the $67,000 threshold – a remarkable turnaround from late 2022 when the token’s value plunged below $17,000.
The most popular digital currency traded 7% higher, at 67,580.70 as of 3:30 p.m. on Monday – a 300% improvement from its nadir — and within striking distance of its all-time high of $68,999.
Since the start of the year, bitcoin has seen its market value surge more than 50% – most of that in the last few weeks — following the approval of spot bitcoin exchange-traded funds last month.
Their launch opened the way for new large investors and has re-ignited enthusiasm and momentum reminiscent of the run up to record 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 US 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 according to LSEG data.
Bitcoin’s recovery has boosted other digital coins, including ethereum, which has seen its value jump by nearly 15% in the past week.
One ethereum coin traded at $3,600 as of 2 p.m. Eastern time on Monday.
Meme stocks such as dogecoin and shiba inu also saw gains of 13% and 39%, respectively.
Bitcoin’s resurgence also powered other crypto stocks listed on US exchanges on Monday.
Coinbase, the popular crypto exchange, saw its stock surge more than 12% to $231.42 a share as of 2:16 p.m. Eastern time.
MicroStrategy, the software company that has more than 190,000 bitcoin on its balance sheet, saw its stock price soar 18% to $1,278 per share.
The rally has come in tandem with records tumbling on stock indexes from Japan’s Nikkei to the S&P 500 and tech-heavy Nasdaq and with volatility gauges in equities and foreign exchange turning lower.
“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,” said Brent Donnelly, trader and president at analysis firm Spectra Markets.
“We are back to a 2021-style market where everything goes up and everyone is having fun.”
