© Reuters
Investing.com– Asian stock prices surpassed key levels on Tuesday and are now less than $1,000 away from hitting the all-time high reached during the peak of a bull run in 2021.
The world's largest cryptocurrency rose as much as 8.5% to hit a more than two-year high of $68,450.9, and was trading comfortably above the $68,000 level as of 20:05 ET (01:05 GMT). . It was now within striking distance of a record high of $68,999 reached in late 2021.
The gains in Bitcoin were mainly driven by constant capital inflows into the token, especially after the approval of several US exchange-traded funds that directly track the price of the token.
Its correlation with tech stocks also influenced the token's recent gains, while markets were anticipating an upcoming halving in the rate at which new Bitcoin is generated, an event that is expected to harden markets.
Data from digital asset manager CoinShares showed that Bitcoin-linked investment products recorded a fifth consecutive week of capital inflows in the week to March 4, a total of $1.7 billion. While short positions in the token increased, US-listed ETFs that track Bitcoin, particularly offerings from BlackRock (NYSE:) (NASDAQ:) and Fidelity (NYSE:), took up the lion's share of the shares. tickets.
On the other hand, Grayscale (NYSE 🙂 continued to see sustained outflows, while dealing with increased competition in the Bitcoin ETF space.
Sentiment towards Bitcoin was also boosted by Microstrategy (NASDAQ:), the largest corporate holder of the token, saying it will issue $600 million in debt to buy more Bitcoin.
The world's No. 2 cryptocurrency rose 4% to a two-year high of $3,624.03, while focus also remained on the approval of a spot ETF for the token. Cryptocurrency-linked stocks also rose on Wall Street.
Still, cryptocurrency trading volumes, particularly in Bitcoin and Ethereum, remained well below the highs seen after the 2022 bull market, Investing.com data showed.
While Bitcoin has recovered more than 400% from lows hit in late 2022, retail interest in cryptocurrencies has remained weak following several high-profile frauds and bankruptcies over the past two years.
Accusations of price manipulation, particularly by stablecoin issuers, have circulated following Bitcoin's latest rally, while relatively low trading volumes are also linked to its astronomical rise in price.
