Bitcoin bursts above US$65,000, record high comes into view

LONDON/SINGAPORE – Bitcoin rallied to a two-year high on March 4, breaking above US$65,000 as a wave of money carried it within striking distance of record levels.

The price hit a session high of US$65,537 early in Europe, having already hit a new two-year high in Asian trading. Bitcoin’s record high is US$68,999.99, set in November 2021.

The largest cryptocurrency by market value has gained 50 per cent in 2024, with most of the rise coming in the last few weeks as trading volume has surged for US-listed Bitcoin funds.

Spot Bitcoin exchange-traded funds were approved in the United States earlier in 2024.

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.

“The flows are not drying up as investors feel more confident the higher the price appears to go,” said Mr Markus Thielen, head of research at crypto analytics house 10x Research in Singapore.

Smaller rival Ether has hitched a ride on speculation that it too may soon have exchange-traded funds driving inflows.

It is up 50 per cent year to date, and by March 4 was trading at two-year highs, up 2.6 per cent on the day at US$3,518.

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.

“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,” said Mr Brent Donnelly, trader and president at analysis firm Spectra Markets.

“We are back to a 2021-style market where everything goes up and everyone is having fun.” REUTERS