Bitcoin was perched at a two-year peak on Tuesday, breaking above $68,600 and stalking the all-time high as money keeps rushing into the largest cryptocurrency by market value.
Bitcoin has gained 50% this year and
most of the rise has come in the last few weeks when inflows into U.S.-listed
bitcoin funds have surged.
On Tuesday, it was at $68,500 in Asian
hours, having reached a session high of $68,828, a whisker away from the
all-time peak of $68,999.99 it set in November 2021.
Spot bitcoin exchange-traded funds were
approved in the United States earlier this year. Their launch opened the way
for new large investors and has re-ignited enthusiasm and momentum reminiscent
of the run up to record levels in 2021.
"It's crypto mania 4.0, and I
think if we continue to see fairly low bond and rate volatility, it could keep
going. There's definitely something of an irrational behaviour creeping into
the market," said Kyle Rodda, senior markets analyst at Capital.com.
Net flows 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.
"The appetite to gain exposure to
Bitcoin is reaching insatiable levels," said Tony Sycamore, a market
analyst at IG.
"While Bitcoin overbought in the short term, the move
is far from done, and dips will be well supported with a move towards $80,000
not out of the question."
The rally has come in tandem with records tumbling on stock
indexes from Japan's Nikkei to the S&P 500 and tech-heavy Nasdaq and with
volatility gauges in equities and foreign exchange turning lower.
Smaller rival ether has hitched a ride on speculation that
it too may soon have exchange-traded funds driving inflows and is up over 50%
for the year and was last at $3,649.
A regulatory filing on Monday showed that U.S. Securities
and Exchange Commission has further delayed its decision on an application by
asset manager BlackRock for its spot ethereum exchange-traded fund.
Elsewhere, the number of dollar-pegged stablecoins issued by
Tether has crossed $100 billion, the crypto company said on its website on
Monday. Tether issues a stablecoin which is designed to maintain a constant
value of $1.