Bitcoin closes in on record above $66K, leads cryptocurrencies on fresh bull run

Bitcoin (BTC-USD) embarked on another bull run on Monday, up more than 6% in the last 24 hours to zero in on a new record high, with investors piling into the booming cryptocurrency trade. 

In early Monday trading, the largest cryptocurrency gave back some of those gains, but was still within shouting distance of $66,371.58, close to its historic peak set last month near $67,000.

Bitcoin’s gain of over $4,000 on the day was reflective of a broader bull trend across the cryptocurrency market, which is now valued above $3 trillion amid a broad-based crypto rally, according to CoinGecko data. 

Other major cryptocurrencies like the memecoin, Doge (DOGE-USD) as well as Ripple (XRP-USD), were also up close to 8% on the day. And after setting new highs last week, Ether (ETH-USD) once again outdid itself logging gains in the last day, blowing past its previous record high to climb above $4,700 this morning. 

The fourth largest cryptocurrency by market cap, SOL (SOL1-USD), which also set new records last week, retreated on Monday, shedding over 3%.

“After losing ground to alternative cryptocurrencies such as Solana last week, the incumbents BTC and ETH came roaring back to life late Sunday,” Martha Reyes, head of research at digital asset prime brokerage and exchange BEQUANT, told Yahoo Finance.

The analyst said that other positive signs include the no major signal for heightened funding rates, or open interest. Those are telltale signs in the crypto derivatives markets for an increasing buildup of leverage, which can either suggest price euphoria or a jump in leverage-induced volatility.

Reyes also pointed to further crypto adoption by large institutions such as Australia’s Commonwealth Bank (CBA.AX), saying last Friday it planned to be one of the first major banks within the country to develop a platform letting its retail customers trade cryptocurrencies.

The announcement is only the latest sign of a global trend for investors of all sizes showing higher interest in portfolio exposure to digital currencies.

In the bond market, real (inflation-adjusted) yields slid in early U.S. dealings. Analysts say the slump reflects overall inflation concerns — a boon to BTC’s story as a scarce digital asset that serves as a hedge against inflation, which has been spiking broadly in the face of easy Federal Reserve monetary policy and strong global demand. 

Along those lines, the passage of the Biden administration’s infrastructure bill is expected to be a tailwind for already surging prices. Meanwhile, new consumer price data coming Wednesday is expected to show worsening signs of inflation in the U.S. economy. 

David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.

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