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Bitcoin surpasses $66,000 as it nears 2021 all-time high

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The price of bitcoin rose to start the week, moving even closer to its all-time high after the rally took a breather over the weekend.

The flagship cryptocurrency was last up 5% at $66,288.70, according to Coin Metrics. Previously, it reached $66,479.70, its highest level since November 2021. Ether advanced 1.5% to $3,525.21.

Both coins just had their best week in almost a year (bitcoin gained about 21% and ether 16%), but halted their run over the weekend as the market digested two days of strong outflows of funds. Grayscale Bitcoin Trust (GBTC) which were offset by inflows into other “newborn” Bitcoin ETFs.

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Bitcoin nears all-time high

“With the birth of these nine new ETFs, big moves now tend to take place during the normal trading week rather than the weekend,” said Antoni Trenchev, co-founder of crypto exchange Nexo. “What we’re seeing today…could well be a repeat of what happened early last week, when bitcoin jumped $10,000 in the span of a few days. We’re in that kind of environment where a day or two of lateral consolidation may precede.” explosive price action thanks to voracious demand for these new cash ETFs.

Investors were very eager to see Bitcoin approach its all-time high. At $66,000, it is about 4% away from its November 2021 intraday high of $68,982.20.

Some analysts have suggested that while it may continue to rise in the near term, bitcoin could could cool down in the coming weeks, as unrealized profit margins approach extreme levels. The realized price of Bitcoin stands at around $42,700, according to CryptoQuant.

Nonetheless, long-term investors are confident that the combination of growing demand for bitcoin via new U.S. exchange-traded funds and a tighter supply expected after the April halving will push the bitcoin price to a new historic high.

The crypto has also seen a slight bid from the stock market, where the tech-heavy Nasdaq Composite reached an all-time high on Friday, becoming the last of the major stock indexes to reach a record close this year. David Duong, head of institutional research at Coinbase, said that while March could be a sideways advance month for bitcoin, the cryptocurrency is benefiting from a productivity boom driven by AI and blockchain technology, which , according to him, is here to stay.

Bitcoin has lifted other crypto tokens, particularly meme coins. Dogecoin jumped 8%, while Shiba Inu the coin jumped 18%. Analysts view their performance as evidence that retail investors, who have been absent for much of the recent crypto rally, are starting to return to the crypto market.

Crypto stocks have been riding the Bitcoin wave. Coinbase And Microstrategy increased by 6% and 18% respectively. In the mining group, CleanSpark And Digital marathon each was trading about 6% higher and Riot platforms added 3%.

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