Bitcoin surged past $68,000 on Tuesday, coming within a whisker of its all-time high set in November 2021. The rally is fueled by inflows into U.S.-listed Bitcoin funds and renewed investor enthusiasm following the approval of spot Bitcoin ETFs earlier this year.
Bitcoin has gained 50% so far in 2024, with most of the gains coming in the past few weeks. On Tuesday, it reached a session high of $68,828, just shy of its record peak of $69,000. At the time of writing, it has pulled back slightly to $66,184.
The launch of spot Bitcoin ETFs in the U.S. has opened the door for new institutional investors and has reignited the kind of momentum seen in the run-up to Bitcoin’s record highs in 2021. Some experts believe the rally could continue if bond yields and interest rate volatility remain low.
Net inflows into the 10 largest U.S. spot Bitcoin funds reached $2.17 billion in the week to March 1, with more than half of that going into BlackRock’s iShares Bitcoin Trust, according to LSEG data.
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Smaller rival Ethereum (ETH) has also benefited from the recent surge in investor interest, rising over 50% year-to-date and reaching $3,679. However, the U.S. Securities and Exchange Commission (SEC) has delayed its decision on an application by BlackRock for a spot Ethereum ETF, potentially pouring cold water over the recent rally.
Ripple (XRP) also saw further gains, briefly reaching within $0.10 of $0.67 before retracing lower.
The cryptocurrency market is currently experiencing a period of heightened volatility and speculation. With continued investor appetite, a move towards $80,000 for Bitcoin is not out of the question.