On Wednesday, Bitcoin once again broke through 5$20,000, a new high, a new two-year high, and the market capitalization exceeded the $1 trillion mark for the first time since late 2021.
Financial and financial blog Zerohedge commented that when everyone's eyes are focused on the rise of Nvidia,Bitcoin's market capitalization has quietly surpassed Tesla, TSMC, Eli Lilly, and Berkshire Hathaway to become the 10th most valuable asset in the world.
Bitcoin's 24-hour gain reached more than 6%, with Coin Metrics showing its intraday high of $52,079, its highest level since December 2021. Since then, Bitcoin's gains have retraced somewhat. According to CoinMarketCap, Bitcoin's market capitalization rose to more than $1 trillion.
Driven by Bitcoin, digital currency concept stocks and blockchain concept stocks rose. Canaan Technology's ADR rose by more than 19%, the Internet celebrity brokerage Robinhood opened 16% higher, the highest increase since August 2022, Hut 8 rose by 12%, and MSTR, which holds a large number of bitcoins, rose 118%。
When the Bitcoin spot ETF first started trading on January 11, Bitcoin** briefly surpassed 4$90,000, but Bitcoin fell more than $10,000 in the following days, partly because investors took profits and waited to see how the ETF performed, and partly because FTX sold 22 million shares of the Grayscale Bitcoin Trust**, worth nearly $1 billion.
After a few days, the Bitcoin ETF has regained its upward momentumThe promotion of spot bitcoin ETF listings is obvious, investor sentiment has become more positive, and demand for bitcoin has increased
CryptoQuant data shows that more than 75% of new investments into Bitcoin go through these ETFs. Since spot Bitcoin ETFs began trading on January 11, about $9.5 billion in new funds have been invested in the Bitcoin market through these ETFs. This Tuesday, there are 6$5.1 billion in inflows, the largest single-day inflow since the launch of spot Bitcoin ETFs. On Tuesday, ETF issuers demanded 12,000 BTC and only 900 BTC were produced per day, meaning that demand began to outstrip new issuances**. In the early days of the Bitcoin ETF listing, the grayscale Bitcoin ETF once saw a large-scale outflow of funds, which once suppressed market sentiment, but now the withdrawal of this part of the funds has also been greatly reduced.
However, the analysis points out thatThe inflow of funds received by Bitcoin seems to have come at the expense of the outflow of funds from ETFs. Ahead of this week's US CPI data, investors redeemed 8$5.8 billion, bringing the year-to-date outflow to $3.2 billion.
The four-year halving of Bitcoin, scheduled for April, has also generated optimism in the cryptocurrency community. The halving reduces the amount of bitcoin miners receive to operate powerful computers that verify blockchain transactions. Based on past experience, this event is often seen as a factor supporting Bitcoin.
Historically, after the halving, Bitcoin has hit new all-time highs in the following months. Bitcoin hit 68,982. on November 10, 2021An all-time high of $20.
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