Bitcoin nears all-time high, marking a 50% rise this year

Bitcoin’s value witnessed a steep rise today, reaching a two-year high of US$64,285, a mere 2% shy of its all-time record of US$68,999.99 set in November 2021. This surge marks a 50% increase in the cryptocurrency’s value since the beginning of this year, with the majority of this growth observed in recent weeks.

The rise in Bitcoin’s value corresponds with a significant increase in trading volumes for US-listed Bitcoin funds, following the approval of spot Bitcoin exchange-traded funds in the United States earlier this year. The introduction of these funds has attracted substantial investors, fuelling a surge of enthusiasm reminiscent of the cryptocurrency’s peak in 2021, said Markus Thielen, the head of research at 10x Research, a crypto analytics firm based in Singapore.

“The flows are not drying up as investors feel more confident the higher price appears to go.”

Ether, Bitcoin’s smaller rival, has similarly experienced a 50% increase in its value this year, fuelled by speculation of potential exchange-traded funds. However, its value of US$3,490 today remained just below its two-year high established last week, reported Bangkok Post.

The dramatic rise in cryptocurrency values has occurred alongside record-breaking performances in global stock indexes, from Japan’s Nikkei to the S&P 500 and the tech-centric Nasdaq, said Brent Donnelly, trader and president at Spectra Markets.

“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.”

Reflecting on the current market trend, Donnelly added, “We are back to a 2021-style market where everything goes up and everyone is having fun.”

In related news, Bitcoin surged past US$55,000, driven by ETF investor demand and MicroStrategy’s acquisitions. The rally, fueled by positive sentiment and reduced supply growth, saw smaller tokens rise. Despite rate upticks, Bitcoin outperformed stocks and gold, with crypto-related firms’ shares soaring globally, including in Asia.