Photo by André François McKenzie

Bitcoin continues its triumphant march, propelled by a combination of factors. The world’s leading cryptocurrency has surged for two consecutive days, inching closer to its all-time high, fueled by strong anticipation surrounding the launch of exchange-traded funds (ETFs) and the upcoming Bitcoin halving event.

The highly liquid token climbed as much as 6.7%, surpassing the $67,000 mark for the first time since November 2021. This year alone, Bitcoin has skyrocketed nearly 60%, leaving traditional asset classes like stocks far behind in the dust.

“This current environment feels eerily similar to late 2020 and 2021, during the bull market characterized by extreme optimism,” commented Jaime Baeza, founder of crypto hedge fund AnB Investments. He expressed concern about the high levels of leverage and extreme greed prevalent in the market.

At the forefront of this frenzy lies the seemingly insatiable appetite for Bitcoin from US-listed ETFs, which debuted in January 2024. Since then, Bitcoin has experienced a remarkable 186% growth in the past year.

These ETFs, backed by prominent names like BlackRock and Fidelity, have attracted a staggering $7.35 billion in net inflows. Notably, even sizable outflows from established players like Grayscale Bitcoin Trust haven’t dampened investor enthusiasm.

“With limited weekend liquidity, markets are anticipating continued inflows and price rallies tonight as new ETF investments come into play,” explained Hayden Hughes, co-founder of social-trading platform Alpha Impact.

Traders are placing their bets on Bitcoin surpassing its November 2021 peak of nearly $69,000, driven by the ETF demand and fear of missing out before the Bitcoin halving expected in April. This event, which halves the mining reward, potentially reduces the coin’s supply and fuels its value due to increasing scarcity.

Other cryptocurrencies, known as altcoins, also joined the upward trend. Cardano and Polkadot witnessed respective gains of 7.4% and 10% on Monday.

Echoing the 2021 bull run, smaller meme coins like Dogecoin and Shiba Inu capitalized on Bitcoin’s momentum, surging by almost 20% and 34% respectively within the last day.

“This resembles the frenzy of 2021, with retail investors seeking quick profits from highly volatile small-cap tokens,” stated Caroline Mauron, co-founder of digital asset derivatives provider Orbit Markets.

The bullish outlook is further reinforced by increased activity in crypto derivatives markets, reflecting investor sentiment. Open interest in Bitcoin and Ether futures traded on the Chicago-based CME Group is nearing its record highs, indicating heightened interest and hedging activity among US institutions seeking exposure to the crypto space.

With Bitcoin poised to test its all-time high in the near future, the crucial $70,000 level is expected to present significant resistance. This story highlights the complex dynamics driving the price of Bitcoin, where factors like institutional adoption, market sentiment, and upcoming events like the halving can significantly influence its trajectory.