Bitcoin’s price soars close to $69,000, then pulls back to $65,000

Bitcoin, the leading cryptocurrency by market value, surged to a two-year peak, surpassing $68,600 on Tuesday and approaching its all-time high.

The cryptocurrency has seen a notable 50 per cent surge this year, with a significant portion of the increase occurring in recent weeks, marked by inflows into US-listed bitcoin funds.

During Asian trading hours on Tuesday, Bitcoin hovered around $68,500, reaching a session high of $68,828, just shy of the record peak of $68,999.99 set in November 2021.

The approval of spot bitcoin exchange-traded funds in the United States earlier this year attracted new significant investors, reigniting enthusiasm reminiscent of the 2021 bull run.

However, Bitcoin has now retreated to $65,000 as of 9:50 p.m. Kyle Rodda, senior markets analyst at Capital.com, described the current market conditions as “crypto mania 4.0,” suggesting that continued low bond and rate volatility could sustain the momentum, though acknowledging signs of irrational behaviour.

In the week ending March 1, net flows into the ten largest US spot bitcoin funds totaled $2.17 billion, with over half directed towards BlackRock’s iShares Bitcoin Trust, according to LSEG data.

Tony Sycamore, a market analyst at IG, expressed optimism about Bitcoin’s potential move towards $80,000 despite short-term overbuying.

The cryptocurrency rally aligns with record-breaking performances in global stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq.

Simultaneously, volatility measures in equities and foreign exchange markets are trending downward.

Ether, Bitcoin’s smaller rival, also surged over 50 per cent for the year, reaching $3,649. Speculation about exchange-traded funds driving inflows has contributed to Ether’s momentum.

A regulatory filing on Monday revealed that the US Securities and Exchange Commission has delayed its decision on BlackRock’s application for a spot ethereum exchange-traded fund.

In a separate development, Tether announced that the number of dollar-pegged stablecoins it issued has surpassed $100 billion, providing stability in the cryptocurrency market.