The price of bitcoin surged to a two-year high, surpassing previous records as a surge of capital brought it closer to that mark. Its market capitalization also exceeded $2.5 trillion. Notably, after setting a fresh two-year high in Asian trade, the price surged to a session high of $65,537 early in Europe. At $65,045, it was recently up 4%.
In terms of market value, Bitcoin is the biggest cryptocurrency. In November 2021, it reached a record high of $68,999.99. This year, it has increased by 50%, with the majority of the gain occurring in the last few weeks due to a sharp increase in capital inflows into Bitcoin funds listed in the US.
The surge has coincided with record lows on stock indices, including the tech-heavy Nasdaq, the S&P 500, and Japan's Nikkei, as well as declining volatility indicators for foreign exchange and stocks.
Notwithstanding the optimistic prognosis, experts thought that dips are common in bull markets. The price of bitcoin fell sharply in January, from peak levels of over $48,000, when investors cashed in on the ETF news after their purchase of the Q4 approval rumor.
According to IntoTheBlock's tracking statistics, more than 97% of Bitcoin addresses are currently profitable. Since November 2021, when the largest cryptocurrency by market value reached a record high of almost $69,000, that percentage has been the highest. The major cause of the 54% increase in bitcoin this year and the 154% gain in 2022 has been the substantial inflows into the US-based spot exchange-traded funds that were authorized in January.
