Bitcoin has surged past the $60,000 mark for the first time since 2021, igniting a fervent trading frenzy in regions where crypto trading are currently being regulated. The rally saw Bitcoin's value soar by as much as 12.6% to reach $63,968 on Wednesday, before slightly retracting to the $60,000 region. This surge has elevated the cryptocurrency's gains to an 42% in the first two months of the year alone.

The rise in Bitcoin's price has rekindled memories of the 2021 crypto bull market, which propelled the digital currency to its zenith of nearly $69,000 in November of that year. The current rally is driven by a potent mix of investor enthusiasm and the pervasive 'fear of missing out' (FOMO) on potential future gains.

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The cryptocurrency's ascent has been further bolstered by the U.S. regulators' recent approval of spot Bitcoin exchange-traded funds (ETFs) by heavyweight asset managers, including BlackRock and Invesco. This development has opened the floodgates for fresh investment, enabling more investors to engage with Bitcoin through a regulated framework. According to K33 Research, the 11 newly launched funds now collectively hold 303,000 bitcoins, valued at approximately $18 billion, or about 1.5% of the total Bitcoin supply.

The Bitcoin price rally coincides with a broader surge in traditional financial markets, underscored by chipmaker Nvidia's performance and the burgeoning interest in artificial intelligence technology. This has propelled U.S. and European stocks to record highs, reports the Financial Times.

However, the trading euphoria has not been without its disruptions. Coinbase, a leading crypto trading platform, reported service interruptions attributed to traffic levels tenfold higher than usual, leading to temporary account balance display issues for some users. Despite these hiccups, Coinbase reassured its customers of the safety of their funds and has reported gradual service improvements.

The Bitcoin boom unfolds amidst ongoing regulatory scrutiny and criticism from financial authorities. Recent comments from European Central Bank officials have starkly criticised the cryptocurrency, asserting that "the fair value of bitcoin is still zero" and warning of the potential societal harm from a new boom-bust cycle.