Source: Zhitong Finance
On Monday (March 4), Bitcoin continued to rise, breaking the 68,000 US dollar mark and rising more than 5,000 US dollars during the day. Previously, Bitcoin reached a historical record of $68999.99 per coin in November 2021.
As one of the largest cryptocurrencies by market capitalization, Bitcoin has risen about 50% this year, with most of the gains concentrated in recent weeks. In particular, spot Bitcoin ETFs listed in the US have ushered in large inflows of capital, which has contributed to the rapid rise in Bitcoin prices.
Earlier this year, the US approved the listing of a spot Bitcoin ETF, which presented opportunities for new large investors and rekindled enthusiasm and momentum similar to 2021.
Markus Thielen, head of research at Singaporean cryptocurrency analysis agency 10x Research, said: “Investors are confident that prices will rise, and capital inflows will continue.”
According to LSEG data, in the week ending March 1, net capital inflows into the top ten US spot Bitcoin funds reached US$2.17 billion.
Meanwhile, smaller competitors such as Ethereum are also affected by market speculation, and ETFs may soon be launched to attract more capital inflows. As of the same day, Ethereum has risen 50% this year and is hitting a two-year high, rising 2.6% on the same day to $3,518 per coin.
The upward trend of Bitcoin and Ethereum echoed the new highs in Japan's Nikkei Index, S&P 500 Index, and the tech-focused Nasdaq Index. Meanwhile, volatility indicators for the stock and foreign exchange markets are also declining.
“With the Nasdaq at a new high, cryptocurrencies are doing well as Bitcoin remains a highly volatile tech agent and liquidity thermometer.” Brent Donnelly, trader and president of analytical firm Spectra Markets, said. “We are back to the market vibe of 2021, everything is rising and everyone is enjoying it.”
Editor/jayden