According to **, Bitcoin touched $64,000 in the early hours of yesterday morning, and then fell to $58,700 in just 15 minutes**8%. The volatility of the cryptocurrency market is increasing, but it is just one candle away from the all-time high! This article will delve into the reasons for Bitcoin's recent surge.
First of all, demand for bitcoin remains strong on Wall Street. BlackRock's IBIT received a 5With an inflow of $200 million, this was the largest inflow ever into a Bitcoin ETF and the second largest of all ETFs yesterday!
Impressively, IBIT itself absorbed 5At $200 million, this is the largest inflow ever into a Bitcoin ETF and the second-largest inflow of any ETF yesterday, behind IVV (S&P 500 ETF). Currently, IBIT manages $8 billion, ranking in the top 5% of all ETFs, which means that a significant portion of trading volume comes from new buy orders, rather than arbitrage or algorithmic trading.
Meanwhile, Eric Balchunas, senior ETF analyst at Bloomberg, noted that any net inflows into new ETFs are crucial. Although the total amount of funding for the new spot Bitcoin ETF, excluding BlackRock, is 1$82.4 billion, slightly less than IBIT's inflows, but the impact of this figure on the overall market is still significant.
Second, the most obvious reason for Bitcoin's continued rise is the supply-demand imbalance: Bitcoin ETFs (and regular spot buyers) demand for Bitcoin outstrips the production capacity of Bitcoin miners. This supply-demand imbalance keeps Bitcoin** at a high level, attracting more investors and institutions to the market.
Finally, for those who trade with leverage, this market is both a mine and a gold mine. The increase in volatility and the extreme extension of the funding rate have provided ample opportunities for profitable trades, while the number of long and short liquidations has also increased dramatically in recent days.
Overall, Bitcoin's recent surge has been largely driven by factors such as strong demand on Wall Street, supply-demand imbalances, and increased leveraged trading. For investors, it is necessary to pay close attention to market trends and conduct adequate research and risk assessment before deciding to invest. After all, the cryptocurrency market is full of opportunities and challenges, and a cautious approach is crucial.
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