Bitcoin has been on a rollercoaster ride in the last 24 hours**.
On the evening of March 5, Beijing time, Bitcoin, as the world's largest crypto bank, once broke 69,000 US dollars, a record high, and the total market value of Bitcoin exceeded 13 trillion, a total of 62 so far this year64%。
However, since then, due to the outpouring of capital profits, there has been a lot of peddling in crypto money and silver trading houses, dragging Bitcoin back sharply to $60,000, plummeting by more than 10%.
Affected by the intensifying "peddler", by press time, Bitcoin** hovered around $63,500. According to Coinglass data, nearly 320,000 people around the world have been liquidated. Other small crypto coins such as Dogecoin and Shiba Inu** are around 10% to 12%.
Microstrategy, the world's largest bitcoin company, plunged more than 20% on Tuesday. Between Feb. 15 and Feb. 25, the company sold at a rate of approximately 1$55.4 billion** bought about 3,000 bitcoins, with an average price of about $51,813 per bitcoin.
The last time Bitcoin approached the all-time high of $69,000 was on November 10, 2021, and has since suffered a downward spiral, hitting a low of $16,000 in late 2022 before breaking the $40,000 mark again in December 2023.
Since mid-February, the acceleration of bitcoin has been related to the superposition of a number of factors.
Goldman Sachs' latest statement shows that it estimates that the Fed will cut interest rates aggressively in 2024, at least four times, with the first rate cut starting in June.
Cutting interest rates means lowering borrowing costs, increasing liquidity in the market, and driving more money into other funding sources, including Bitcoin. In addition, savings or timed products with low interest rates will become less attractive to funders, which will also contribute to the further growth of Bitcoin**.
On Wednesday and Thursday, Fed Chairman Jerome Powell will appear in the US Senate and House of Representatives for semi-annual monetary policy hearings, which will be his final exposé speech before the Fed meeting on March 20. At that point, Powell may speak of his views on interest rate cuts. However, many analysts speculate that the Fed has not yet announced a strong signal that it should cut interest rates.
Another trigger for price increases is the upcoming Bitcoin halving in April. The halving thing is a central mechanism of the Bitcoin network, and every 210,000 blocks occur, the block reward of Bitcoin will be halved, aiming to manipulate the issuance speed and total amount of Bitcoin. The "halving" occurs approximately every four years, depending on the speed of block generation on the Bitcoin network.
The important impact of the "halving" thing is that when the volume of new bitcoin is cut, the demand remains the same, and the reduction may lead to *** before the "halving" event in April, buyers and sellers rush to the bitcoin market in the hope of making a profit when the **cut ***.
However, according to JPMorgan Chase, the "halving" event could also have a serious negative impact on the profitability of Bitcoin miners. The statement even warned that the hashrate of the Bitcoin network will drop by 20% after the "halving", which will lead to an increase in the estimated production cost and base of Bitcoin, and Bitcoin may plummet to 4$20,000.
According to CoinMarketCap, until March 5, Beijing time, there are still 48 days left between the halving of Bitcoin.
In addition, in January, the BTC ETF (exchange-traded**) was approved for listing. The U.S.** Board of Buyers and Sellers (SEC) approved 11 spot Bitcoin ETFs, and the first batch of ETFs began trading on January 11. This action lowers the barrier to purchase for Bitcoin, attracting more institutions and funders to the market. Agreeing to go public also boosts the legitimacy of crypto assets.
The market response to the first batch of Bitcoin (BTC) ETFs was very positive, with the trading volume of Bitcoin spot ETFs exceeding $4 billion on the day of listing, and the total trading value of 11 spot Bitcoin ETFs exceeding $3.5 billion. BlackRock's spot Bitcoin ETF (IBIT) reached $10 billion in seven weeks. In terms of financial flows, IBIT is now the third-largest ETF in the United States.