Title: Bitcoin Surges to $61,400 Amidst Full-Blown Rally

Bitcoin, the leading cryptocurrency by market cap, has skyrocketed to around $61,400 after crossing the $50,000 mark on February 12. This surge marks its highest price level since November 2021 when it hit an all-time high of approximately $69,000 during the last crypto boom. The current rally has seen Bitcoin rise about 40% since the beginning of the year, with an average daily inflow of $195 million in February due to the approval of several Bitcoin ETFs by the Securities and Exchange Commission at the beginning of January.

Institutional money influx, especially from major financial names like BlackRock and Fidelity, has significantly contributed to the demand for Bitcoin. Notably, BlackRock's iShares Bitcoin ETF pulled in $520 million of new inflows on Tuesday alone, fueled by the readiness of their affiliates to offer the cryptocurrency to customers for the first time. Market experts attribute the surge in demand to the limited supply of Bitcoin unable to accommodate the influx of new investors.

Zach Pandl, the head of research at Grayscale, highlighted the impact of the upcoming "halving" event, expected around April 19, which will cut the daily supply of newly minted Bitcoin by 50%. The scarcity factor, combined with growing institutional interest, has created a bullish atmosphere in the industry. Additionally, the rally has seen other cryptocurrencies, including Ethereum, surge in value, with Ethereum trading at around $3,300 after dropping to close to $1,000 in 2022.

The return of the crypto bull market is anticipated to pose challenges for regulators, who have sought to navigate the industry under the Biden administration's policy. Previous legal setbacks, such as the appeals panel decision that prompted the SEC to move forward with Grayscale's ETF petition last summer, highlight the ongoing regulatory challenges amidst the booming cryptocurrency market.