On March 5, the major cryptocurrency, Bitcoin, hit a two-year high, rising above $68,600. Amid the surge in the cryptocurrency market, investors have been pouring money into Bitcoin and Ethereum.
Bitcoin is up 50 percent this year, with most of the increase coming in recent weeks and attributed to a surge of funds flowing into spot Bitcoin ETFs launched in the US in January.
Bitcoin hit a high of $68,828 during Tuesday's Asian session and was trading at $67,245 at the time of writing, according to data from Coingecko.
The major cryptocurrency could soon hit an all-time high of $68,999 in November 2021, Reuters reported.
The approval and launch of spot Bitcoin ETFs in the US have attracted major investors to the new crypto product and sparked sporting interest as daily Bitcoin purchases far exceed the number of tokens mined.
"This is crypto mania 4.0. Irrational behavior has definitely infiltrated the market," said Kyle Rodda, a market analyst at Capital.com.
Investor inflows into the top 10 Bitcoin ETFs totaled $2.17 billion in the last week of February. The leaders were BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin ETF.
IG market analyst Tony Sycamore said: "Although Bitcoin is overbought in the short term, the move is far from over and will see a move towards $80,000.
Bitcoin's rally coincided with record highs in Japan's Nikkei, S&P 500, and Nasdaq stock indexes.
Much like Bitcoin, Ethereum is on a growth spurt. Investors are speculating that spot funds on ETH will be approved soon, which could also receive a large influx of investor funds.
Ethereum has risen more than 50% since the beginning of the year, reaching $3,731 during the morning hours of the Asian session on March 5th. At the time of writing, the price of ETH is hovering around $3,725. The change for the day was +7.3%.
There has been a confident move above the 3,700 lev el. A new multi-month high was formed at the 3,715 level, and now the price is consolidating its growth. The pair seems to be preparing for a move to the 3,850 and 4,000 levels.
On Monday, the US Securities and Exchange Commission (SEC) postponed a decision on BlackRock's application for a spot Ethereum ETF.
However, the second cryptocurrency is now awaiting a landmark upgrade to the Dencun blockchain. Ethereum developers have confirmed that the rollout date for the Dencun (Deneb-Cancun) upgrade to the main network is March 13. The previous Shapella upgrade also sparked high expectations for the asset's value growth.
On Monday, Tether reported that the number of USDT dollar-backed stablecoins had exceeded $100 billion.
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