Bitcoin reaches two-year peak on Monday hitting $64,000 level

ISLAMABAD: Bitcoin surged to a two-year peak on Monday, surpassing $64,000 fueled by a surge of investment that brought it close to its previous record levels.

Reaching $64,285 early in the Asian trading session, its highest point since late 2021, Bitcoin saw a 2 percent increase, settling at $63,850. The cryptocurrency’s all-time high stands at $68,999.99, set in November 2021.

This year alone, Bitcoin has experienced a 50% increase, with the majority of this surge occurring in recent weeks, particularly with the notable rise in trading volume for US-listed bitcoin funds.

Approval of spot bitcoin exchange-traded funds earlier in the year in the United States has opened doors for new significant investors, reigniting excitement and momentum reminiscent of the 2021 record-breaking levels.

Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, noted, “The flows are not drying up as investors feel more confident the higher price appears to go.”

Additionally, Ethereum, Bitcoin’s smaller competitor, has followed suit on speculation that it too may soon witness inflows driven by exchange-traded funds. Up 50 percent year-to-date, Ethereum hovered at $3,490 on Monday, just below the two-year highs reached last week.

This crypto rally coincides with record-breaking performances in stock indexes such as Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq. Moreover, volatility indicators in equities and foreign exchange have started to decrease.

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. We are back to a 2021-style market where everything goes up and everyone is having fun.”