On Monday, Bitcoin surged, breaking an almost three-week sideways churn in which demand hovered around $60,000. Bitcoin hit $66,000 Monday, seeming to be on track to threaten the record high of $66,975 established on Oct. 20.

According to CoinDesk statistics, Ether, the native coin of Ethereum’s network, also shattered its previous record early Monday, temporarily passing $4,700 per coin. By market capitalization, bitcoin is the most valuable cryptocurrency, while Ether is the second most valuable.

Bitcoin may be being propelled higher by falling real or inflation-adjusted bond yields, according to Yuya Hasegawa, a crypto market analyst at Japan’s exchange bitbank. Hasegawa said that real rates decreasing owing to inflation worries may have driven the current BTC rise.

Data from the Department of Treasury showed that the 10-year real yield fell to -1.09% on Friday, the lowest since the end of August. Bitcoin is largely regarded as a store of value asset similar to gold. While Federal Reserve Chairman Jerome Powell stated last week that price pressures might be temporary, worries of out-of-control inflation remain. “

According to Eddie Wang, senior analyst at OKLink research, the crypto exchange OKEx’s on-chain data research arm, on-chain data also shows favorable indicators for bitcoin in the medium term.

The number of unique wallets with a balance greater than zero has risen to 39 million, near to the record high of 39.28 million non-zero wallets set in May. A rise in bitcoin-pegged currencies and stablecoins, according to Wang, is also an indication of a bull market.

Large investors, sometimes known as whales, are accumulating again, according to data gathered by blockchain analytics firm Chainalysis. In the last week of October, investors owning at least 1,000 BTC purchased 142,000 coins, bringing the total to over 200,000 BTC, the biggest since 2021.

Bitcoin’s current positive surge looks to be spot-driven, according to Daniel Kukan, senior cryptocurrency trader at Swiss-based Crypto Finance AG. At the same time, financing rates or the cost of maintaining long positions in the permanent futures market remain low.

Bitcoin’s price is expected to fluctuate between $58,000 and $76,000 this week, according to the Japanese exchange bitbank. The approval of the first bitcoin futures-backed exchange-traded funds in the United States had sent bitcoin to an all-time high.