© Reuters
Investing.com– Prices rose beyond key levels on Tuesday, driven largely by signs of sustained capital inflows into spot exchange-traded funds that launched earlier this year.
The world's largest cryptocurrency jumped almost 10% to $56,256.9 at 21:48 ET (02:48 GMT), trading at its highest level in more than two years. The token was now less than $14,000 away from hitting an all-time high during a bull run in late 2021.
The world's No. 2 cryptocurrency rose 3.6% to $3,217.48, its highest level since early 2022.
The gains in Bitcoin, along with the broader cryptocurrency market, came as a report from digital asset manager Coinshares showed cryptocurrency investment products recording a fourth consecutive week of capital inflows.
The report showed that digital asset investment products saw weekly inflows of $598 million in the week to February 23, with Bitcoin ETFs taking up the lion's share of inflows.
Bitcoin products saw $570 million in inflows, and BlackRock's iShares Bitcoin Trust (NASDAQ:) saw $543.5 million in inflows. This largely offset strong outflows from Grayscale Bitcoin Trust (BTC) (NYSE:), as the trust faced a slew of new entrants into the Bitcoin ETF space.
Coinshares also noted that short interest in Bitcoin was increasing in the wake of recent price increases. The token is trading up around 24% so far in 2024, after doubling its price through 2023.
Bitcoin also had the support of MicroStrategy Incorporated (NASDAQ:), the largest corporate holder of the token, and announced that it had recently purchased 3,000 tokens for about $155 million.
Bitcoin's stellar rally this year was primarily driven by the recent approval in the United States of ETFs that directly track the price of the cryptocurrency.
But while the approvals brought a lot of institutional capital to the token, retail trading volumes have remained relatively low, especially as the crypto industry faces a massive loss of faith after a series of scandals and bankruptcies. High profile.
Trading volumes also remained at a fraction of the highs seen during 2021 and early 2022, according to data from Investing.com.
Still, the increases in cryptocurrency prices spread to cryptocurrency stocks. US Stock No. 1 Coinbase Global Inc (NASDAQ 🙂, miner Marathon Digital Holdings Inc (NASDAQ 🙂 and MicroStrategy Incorporated (NASDAQ 🙂) rose between 15% and 22% on Monday.
