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The biggest cryptocurrency by market value is continuing to rally with the price reaching above $65,000 (€59,919) in the early Asian trade on Monday, as institutional investors pushed up the prices of cryptocurrencies. 

The CoinDesk Bitcoin Price Index (XBX) had a peak of $65,563.25 (€60,408.34) in the early hours of Monday.

The $65,000 is about 5% below Bitcoin’s all-time high value in dollar terms of $69,000 which was set in November 2021.

One of the main drivers of the current rally is that investment in crypto funds has risen rapidly since a financial product linked to Bitcoin, called Spot Bitcoin ETFs, was authorised in the US.

“The main driver has been the Fed’s approval of spot Bitcoin ETFs as the funds load up on Bitcoin,” said Bryan Tan, Partner at crypto-disputes expert at international law firm Reed Smith.

“Another point to note is that, unlike previous run-ups of Bitcoin, this comes against a backdrop of increasing regulatory clarity over crypto as opposed to the previous runs, which were based on bitcoin thriving in unregulated environments,” he added.

There is also a high demand for Bitcoin and Ethereum (the world’s second-largest cryptocurrency) as a sort of “safe-haven” for investments. “They are favoured by large investors concerned about a new wave of problems at US regional banks,” said FxPro senior market analyst Alex Kuptsikevich. 

 A so-called “Fear of Missing Out” factor also played a role, as the cryptocurrency had been rising in value over the past few weeks, Kuptsikevich added.

Traders are also betting on the price to go even higher after a so-called Bitcoin halving event, expected in April. With the reward of mining being halved, the supply could come down and push the price further up.

Bitcoin breaks records across the globe

Bitcoin (BTC) has also broken records in other currencies, according to CoinDesk, which reported earlier that BTC has already crossed peak prices against several major and emerging-market currencies in the past week, including China, Japan, the UK and India and it reached a record high in euro terms on Monday, the price going above €60,000.

All in all, crypto market capitalisation rose 5% in 24 hours to $2.44 trillion. 

However, **there is caution about predicting a further rise in the price of BTC**with macroeconomic factors meaning obstacles to further BTC growth in the short term, according to crypto investment management company Grayscale. “If inflation remains stubbornly high, the Fed may delay a rate cut. A higher interest rate is likely to be positive for the dollar and negative for Bitcoin,” said Kuptsikevich.