Bitcoin surges above $68,000, just a "stone's throw away"

Iti9

On the morning of March 5th, Bitcoin broke through $68,000, rising approximately $6,800 in the last 24 hours, reaching a peak of $68,569.44. As of the time of writing, it was temporarily reported at $68,178, approaching the historical high of $68,991.85 set on November 10, 2011.

It is worth mentioning that the significant fluctuations in Bitcoin prices have led to the liquidation of some speculative traders. According to CoinGlass data, there were liquidations totaling $152 million in the Bitcoin market in the last 24 hours, with a total of 141,730 individuals being liquidated, amounting to $437 million.

Bitcoin has entered an accelerated upward phase this year, with trading fervor continuing to escalate. In just one month, Bitcoin has surged by over 50%. Calculated in Chinese yuan, Bitcoin briefly approached around 500,000 yuan per coin.

As reported by Securities Times, Bitcoin is set to undergo a new "halving" in April, serving as a significant factor driving the accelerated rise of Bitcoin. "Halving" refers to the halving of mining rewards, occurring approximately every four years, depending on the block generation speed of the Bitcoin network. This will reduce the supply of Bitcoin, and it is expected that on April 23, 2024, the block reward will decrease from 6.25 BTC to 3.125 BTC.

Historically, this situation has been favorable for Bitcoin prices. Anticipating a decrease in supply and a subsequent rise in prices, traders have flooded into the Bitcoin market before the "halving" event in April. However, the key trigger for the market surge was the approval of Bitcoin ETFs in January this year. On January 11, 2024, the U.S. Securities and Exchange Commission officially approved 11 Bitcoin spot ETF applications, including those from institutions such as BlackRock. This decision allows ordinary investors to easily buy and sell Bitcoin, attracting more institutional and retail investors into the market. The approval of listings also enhances the legitimacy of crypto assets, further propelling the gradual increase in Bitcoin prices.

Data shows that in February, funds flowing into Bitcoin ETFs reached $5.9 billion. Since its listing on January 11, the inflow into Bitcoin ETFs has been $7.4 billion, while during the same period, gold ETFs saw an outflow of $2.9 billion. Speculation in the market suggests that some investors are choosing to sell gold ETFs and buy Bitcoin ETFs.

Currently, the demand for Bitcoin spot ETFs far exceeds the daily supply, resulting in a decoupling of supply and demand. On February 28, the purchase quantity of Bitcoin spot ETFs reached 11,211, while the daily supply of 900 Bitcoins had already reached the maximum capacity of miners. This tenfold difference indicates that Bitcoin spot ETFs are attracting more capital into the cryptocurrency sector.

With the continuous rise in Bitcoin prices, is there still room for further upside?

According to the International Finance News, Gao Chengshi, an executive committee member of the Blockchain Special Committee of the China Computer Society, believes that in the short term, there is still a high possibility of further upward movement in Bitcoin prices, with some room for continued increase. In the long term, as the consensus on Bitcoin expands, more institutions and individuals will view it as an asset management and allocation tool, leading to a further increase in its price.

Yun Jianing, Co-Chair of the Blockchain Special Committee of the China Communications Industry Association, also has an optimistic outlook on the future development of the digital asset market. He states that the impact of Bitcoin spot ETFs can be compared to that of gold ETFs. Since the launch of gold ETFs, the gold market has experienced long-term bullishness and witnessed significant price increases. Bitcoin spot ETFs may follow a similar development trajectory, bringing long-term growth potential to the market.

However, Yun Jianing also points out that macroeconomic conditions, especially global monetary policies and inflation rates, must be considered, as these factors have always had a profound impact on Bitcoin prices. Therefore, although some institutions are optimistic about the future performance of Bitcoin, there is significant uncertainty in these predictions. Potential investors are advised to look beyond high returns and recognize the high risks involved, avoiding being controlled by FOMO (fear of missing out) emotions when considering Bitcoin investments.

Jafar224

This upward trend is also quite alarming.

Jiger955

It is currently undergoing a continuous upward trend.