Bitcoin surged to over $52,000, surpassing a market value of over $1 trillion.

Kabir903

Zerohedge commented that while everyone's attention is focused on Nvidia's rise, the market value of Bitcoin has quietly surpassed Tesla, Eli Lilly and Company, and Berkshire Hathaway, becoming the world's tenth most valuable asset.

Bitcoin's 24-hour gain exceeded 6%, reaching a peak of over $52,079 according to Coin Metrics, the highest level since December 2021. Subsequently, Bitcoin experienced some retracement. According to CoinMarketCap, Bitcoin's market value rose to over $1 trillion.

Driven by Bitcoin, stocks related to digital currencies/blockchain concept experienced a general rise. Jia Nan Technology ADR surged over 19%, popular brokerage Robinhood opened 16% higher, marking its largest intraday gain since August 2022, Hut 8 rose 12%, and MicroStrategy (MSTR), which holds a significant amount of Bitcoin, rose 11.8%.

When Bitcoin spot ETF started trading on January 11th, Bitcoin briefly exceeded $49,000 on the same day. However, in the following days, Bitcoin experienced a cumulative sharp decline of over $10,000. This was partly due to investors taking profits and waiting to see how the ETF performs. Another significant reason was FTX selling 22 million shares of Grayscale Bitcoin Trust stock, worth nearly $1 billion.

Optimism is rising in the cryptocurrency community regarding Bitcoin's once-in-four-years halving scheduled for April. Halving reduces the number of bitcoins miners receive for validating blockchain transactions using powerful computers. Historically, this event is considered a factor supporting Bitcoin prices.

Historically, after halving, Bitcoin has reached new all-time highs in the following months. Bitcoin hit a historical high of $68,982.20 on November 10, 2021. After experiencing a brief correction, Bitcoin ETF resumed its upward trend. The impact of the launch of spot Bitcoin ETF is evident, and investor sentiment has become more positive, increasing demand for Bitcoin.

CryptoQuant data shows that over 75% of new investments in Bitcoin are made through these ETFs. Since the launch of spot Bitcoin ETF on January 11, approximately $9.5 billion in new funds have entered the Bitcoin market through these ETFs.

On Tuesday, there was a capital inflow of $651 million, the largest single-day inflow since the launch of the spot Bitcoin ETF. On Tuesday, ETF issuers requested 12,000 bitcoins, while only 900 bitcoins are produced daily, indicating that demand is starting to exceed the newly issued supply.

Bitcoin ETFs initially experienced significant outflows, causing market sentiment to be suppressed. However, the outflow of funds has now significantly reduced. Nevertheless, analysis suggests that the influx of funds into Bitcoin seems to come at the expense of outflows from gold ETFs. Last week, investors redeemed $858 million from gold ETFs before the release of U.S. CPI data, bringing the year-to-date gold fund outflow to $3.2 billion.

Nimmi373

It seems that it can't continue like this.

Pooja193

This increase is really crazy, isn't it?