Bitcoin's price surged beyond the $65,000 mark on Monday, reaching its highest level in two years and edging closer to its historical peak. At approximately 2:20 pm, the cryptocurrency hit $65,500, representing a notable uptick of 3.71 percent. Its previous record pinnacle of $68,999.99 was achieved in November 2021. Notably, Bitcoin has experienced a robust surge of nearly 50 percent in value since the beginning of this year, with a significant portion of this surge occurring in recent weeks, coinciding with heightened trading volume for US-listed Bitcoin funds.
The recent rally in Bitcoin is attributed to several factors, with one prominent driver being the substantial inflows into spot Bitcoin exchange-traded funds (ETFs) alongside persistently positive investor sentiment, particularly in anticipation of the forthcoming Bitcoin halving event. Raj Karkara, the COO of ZebPay, a leading Indian cryptocurrency firm, emphasized this point, stating, "Bitcoin's recent surge highlights the asset’s remarkable resilience and widespread adoption. This surge witnessed for the first time in over two years, is fueled by unprecedented inflows into spot Bitcoin exchange-traded funds (ETFs) and consistently positive investor sentiment leading up to the upcoming Bitcoin halving event."
Karkara further elaborated on the significant inflow volumes into Spot Bitcoin ETFs on February 29, amounting to $896 million, nearly quadrupling the outflow volume. Notably, major players such as Blackrock, Grayscale, and Fidelity have contributed substantially to over 80 percent of all Bitcoin ETF volumes as of February 29.
Moreover, Karkara highlighted the favorable macroeconomic conditions for the crypto market, indicating sustained upward momentum shortly. "ZebPay remains highly bullish on both the short and long-term prospects of Bitcoin and the broader crypto market," he added.
It is noteworthy that the approval of spot Bitcoin exchange-traded funds in the United States earlier this year has attracted new large investors, reigniting enthusiasm and momentum reminiscent of the run-up to record levels in 2021.
Furthermore, the cryptocurrency rally has coincided with record-breaking performances in stock indexes and decreasing volatility gauges in equities and foreign exchange markets. Brent Donnelly, a trader and president at analysis firm Spectra Markets, remarked, "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."
