Bitcoin surged past $65,000 on Monday, its highest level in two years, as the launch of U.S. Bitcoin ETFs and broad market optimism continue to fuel a cryptocurrency rally.
The leading cryptocurrency reached $64,290 overnight, coming within a striking distance of its all-time high set in November 2021. Bitcoin is currently trading 3% higher for the session at $65,254.
The recent surge can be attributed to several factors, including the approval of spot Bitcoin ETFs in the United States, which has opened the doors for new institutional investors. This, coupled with the broader market rally encompassing record highs on major stock indexes and lowered volatility, has created an environment reminiscent of the 2021 bull run.
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As traditional markets continue to thrive, particularly tech-heavy indices like the Nasdaq, Bitcoin is seen as a high-volatility proxy for the technology sector and a gauge of market liquidity, suggesting it may benefit from the current market conditions.
This positive sentiment has also spilt over to other cryptocurrencies, with Ethereum (ETH) reaching 50% gains year-to-date and laggard XRP trading above $0.64.
The current market conditions, with rising prices and increased participation, are drawing comparisons to the boom period of 2021, suggesting a potential return to a crypto bull market.
