Bitcoin, the largest cryptocurrency by market value, reached a two-year high and broke $65,000 as a surge of capital brought it dangerously close to record highs.
Markus Thielen, head of research at crypto analytics house 10x Research in Singapore, confirmed this development in a statement on Monday.
According to experts, a key component of the cryptocurrency’s valuation mechanism is the Bitcoin halving event, which usually causes a price increase because of the scarcity effect and the resulting decrease in the pace of coin creation.
As of the time of reporting, the price of Bitcoin is $65,037.24. That according to CoinGecko data, indicates that the price has increased by 6% since yesterday and has gained an astounding 27% in only the last week.
Should it be able to duplicate that 6% increase in price, it will reach parity with its peak.
The price, which had already reached a record two-year high in Asian trade, reached a session high of $65,537 early in Europe. In November 2021, Bitcoin reached a record high of $68,999.99.
Both analysts and investors have noticed this surge, which has prompted a closer look at the elements underlying this positive momentum.
“The flows are not drying up as investors feel more confident the higher price appears to go,” Thielen commented.
Reacting to the development, Brent Donnelly, a trader and president at analysis firm Spectra Markets said: “In a world where Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer.”