Bitcoin is approaching an all-time high, having surged to a level just below $68,800, marking a 50% gain this year. The world’s most traded cryptocurrency has witnessed significant inflows in recent weeks, with its current value at $66,709. This surge is attributed to increased inflows into US-listed bitcoin funds, which have risen sharply.
Analysts describe the current market as “crypto mania 4.0,” suggesting an element of irrational behavior. The recent approval of spot bitcoin exchange-traded funds in the United States has attracted new large investors and rekindled enthusiasm reminiscent of the 2021 bull run. In the week ending March 1, net flows into the 10 largest US spot bitcoin funds reached $2.17 billion, with over half directed to BlackRock’s iShares Bitcoin Trust.
While Bitcoin faces short-term overbought conditions, analysts believe the upward momentum is not exhausted, with predictions of a move towards $80,000. The current surge in appetite to gain exposure to Bitcoin is described as reaching “insatiable levels.”
Ether, Bitcoin’s smaller rival, has also seen significant gains, rising over 50% for the year. Speculation surrounding the potential launch of exchange-traded funds for ether is driving increased inflows. Ether is currently priced at $3,747, up 4.4% on the day.
In a regulatory filing on Monday, the US Securities and Exchange Commission announced a further delay in its decision on BlackRock’s application for a spot ethereum exchange-traded fund.
Additionally, Tether, the issuer of dollar-pegged stablecoins, announced that the number of stablecoins issued has surpassed $100 billion. Tether’s stablecoin is designed to maintain a constant value of $1.
