Bitcoin, the leading cryptocurrency, is on an upward trajectory, reaching over $64,000 in the Asian trading session on Monday. With a surge in capital, Bitcoin’s value settled 2% higher for the session at $63,850, marking its highest point since late 2021 and bringing it closer to its previous record high of $68,999.99 in November 2021.
Crypto Momentum in 2022:
Bitcoin has witnessed a remarkable surge of 50% in value this year, with substantial gains observed in recent weeks. The surge aligns with increased trading volume for US-listed bitcoin funds. The approval of spot bitcoin exchange-traded funds in the United States earlier this year has attracted significant inflows from new large investors, reigniting enthusiasm reminiscent of the 2021 record levels.
Markus Thielen, head of research at crypto analytics firm 10x Research in Singapore, commented, “The flows are not drying up as investors feel more confident the higher price appears to go.”
Ether’s Rise and ETF Speculation:
Ether, Bitcoin’s smaller rival, has also experienced a surge in speculation, particularly regarding the potential impact of exchange-traded funds. Despite reaching $3,490 on Monday, reflecting a 50% increase year-to-date, Ether remains just below its two-year highs reached last week.
Cryptocurrency and Broader Market Trends:
The crypto rally aligns with record-breaking performances in stock indexes, including Japan’s Nikkei, the S&P 500, and the Nasdaq. Despite the high volatility in technology, Bitcoin serves as a proxy and liquidity thermometer in a market reminiscent of the trends seen in 2021.
Brent Donnelly, trader and president at analysis firm Spectra Markets, remarked, “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. We are back to a 2021-style market where everything goes up and everyone is having fun.”
