Bitcoin scaled a two-year high on Monday, breaking US$67 000 as a wave of money carried it within striking distance of record levels.

It touched $67 458, its highest since late 2021. Bitcoin’s record high just shy of $69 000 was set in November 2021.

The largest cryptocurrency by market value has gained more than 50% this year and most of the rise came in the last few weeks where trading volume has surged for US-listed bitcoin funds.

Spot bitcoin exchange-traded funds were approved in the US earlier this year. Their launch opened the way for new large investors and has reignited enthusiasm and momentum reminiscent of the run up to record levels in 2021.

“The flows are not drying up as investors feel more confident the higher price appears to go,” said Markus Thielen, head of research at crypto analytics house 10x Research in Singapore.

Smaller rival ether has hitched a ride on speculation that it too may soon have exchange-traded funds driving inflows. It’s also up more than 50% year to date.

Tech proxy

The rally has come in tandem with records tumbling on stock indexes from Japan’s Nikkei to the S&P 500 and tech-heavy Nasdaq and with volatility gauges in equities and foreign exchange turning lower.

“In a world where the Nasdaq is making new all-time highs, crypto is going to perform well as bitcoin remains a high-volatility tech proxy and liquidity thermometer,” said Brent Donnelly, trader and president at analysis firm Spectra Markets.