Bitcoin crossed the $67,000 threshold on Monday, nearing an all-time high, a stunning turnaround from late 2022, when the token's value dipped below $17,000.
The most popular digital currency was trading 7% higher at 67,580.70 as of 3:30 p.m. Monday, up 300% from its lows and within striking distance of an all-time high of $68,999.
Since the beginning of the year, Bitcoin's market value has risen by more than 50%, most in the past few weeks, following last month's approval of the Spot Bitcoin exchange-traded fund.
Their launch paved the way for new large-scale investors and reignited enthusiasm and momentum reminiscent of 2021's rally to record levels.
“Flows have not dried up because investors are confident that prices will rise,” said Markus Thielen, head of research at crypto analysis firm 10x Research in Singapore.
Net inflows into 10 U.S. spot Bitcoin funds reached $2.17 billion in the week ending March 1, with more than half of that coming to BlackRock's iShares Bitcoin Trust, according to LSEG data. There was an inflow into the country.
Bitcoin's recovery has fueled gains in other digital coins, including Ethereum, whose value has risen nearly 15% over the past week.
One Ethereum coin is trading for $3,600 as of 2pm ET on Monday.
Meme stocks like Dogecoin and Shiba Inu also rose 13% and 39%, respectively.
Bitcoin's resurgence also gave momentum to other crypto stocks listed on U.S. exchanges on Monday.
Shares of popular cryptocurrency exchange Coinbase soared more than 12% to $231.42 per share as of 2:16 p.m. ET.
Shares of MicroStrategy, a software company with more than 190,000 Bitcoins on its balance sheet, soared 18% to $1,278 per share.
The rally coincided with record plunges in stock indexes from Japan's Nikkei Stock Average to the S&P 500 to the tech-heavy Nasdaq, and declines in stock and foreign exchange volatility indicators.
“Bitcoin remains a volatile technology proxy and liquidity thermometer in a world where the Nasdaq is at new all-time highs,” said Brent Donnelly, a trader and president at analytics firm Spectra Markets. Therefore, virtual currencies are likely to perform well.”
“We’re back to a 2021-style market where everything is up and everyone is having fun.”
