Bitcoin and other cryptocurrencies continued their upward march on Monday, riding the wave of a sustained crypto rally that has brought record highs within reach. Bitcoin, in particular, surged nearly 7% over the past 24 hours to reach $67,500, inching closer to its all-time peak above $69,000 recorded in November 2021. This upward trajectory has been fueled by a combination of factors, including robust sentiment in wider financial markets, with major indices like the S&P 500 and Nasdaq reaching record levels.
The recent approval of spot Bitcoin exchange-traded funds (ETFs) has also played a significant role in boosting crypto prices. These ETFs, which allow investors to easily gain exposure to Bitcoin without directly owning the asset, have attracted substantial inflows since their introduction in mid-January. Managed by mainstream financial firms such as BlackRock, these funds have seen a surge in investor interest, driving prices higher as they accumulate Bitcoin tokens.
According to Aditya Das, an analyst at blockchain research group Brave New Coin, Bitcoin appears poised to challenge its previous record highs in the near future. The cryptocurrency has witnessed rapid price movements in recent weeks, with significant jumps occurring within minutes, creating excitement among traders and investors.
Since the beginning of the year, Bitcoin has gained over 50%, propelled by the anticipation and subsequent approval of spot Bitcoin ETFs. The influx of funds into these ETFs has been substantial, with net inflows totaling $1.77 billion between February 26 and February 28, according to research from crypto financial services firm Galaxy. February 28 marked the largest single-day inflow of funds into Bitcoin ETFs, underscoring the growing investor appetite for crypto exposure through regulated financial products.
According to analyst Gabe Parker from Galaxy, the surge in Bitcoin towards record highs reflects a growing confidence in the asset among U.S.-based investors, registered investment advisor (RIA) platforms, and institutional players. The introduction of spot Bitcoin ETFs has provided increased accessibility to Bitcoin for wealth managers and financial advisors in the U.S., which is expected to further drive inflows into the cryptocurrency.
In addition to Bitcoin, Ether, the second-largest cryptocurrency by market capitalization, also experienced gains, rising 2.6% to surpass $3,580. Other smaller tokens, commonly referred to as altcoins, saw positive momentum as well. Cardano recorded a 7.7% increase, while Polygon surged by 4.8%. The market saw significant activity in meme coins, with Dogecoin soaring by 28% and Shiba Inu jumping an impressive 53%. These developments indicate a heightened bullish sentiment in the market, with traders enthusiastically investing in tokens that originated from internet jokes.