Recently, the cryptocurrency market has been incredibly lively, with Bitcoin skyrocketing like a rocket, directly breaking through the $97,000 mark, leading the entire digital asset market to flourish. In the past 24 hours, the total global cryptocurrency market cap surged by 1.64%, reaching an astonishing $2.98 trillion. This surge is mainly attributed to the strong performance of the two giants, Bitcoin and Ethereum, which, like leaders, are pushing others upwards.
How intense is this wave of market activity? Bitcoin surged more than $3,500 in just a few hours, reaching a high of $97,469. This rapid increase forced those who shorted Bitcoin to face significant losses, with about $55 million in short positions being liquidated. Such a large trading volume indicates a particularly high enthusiasm for Bitcoin in the market, but fortunately, it hasn't reached a frenzied level; from a technical perspective, this increase appears relatively healthy.
Regarding this surge, there are several important reasons behind it. First, there have been new developments in the global trade situation. The U.S. government recently announced it would renegotiate trade agreements with 18 countries, excluding China, and the Treasury Secretary personally confirmed this news. Upon hearing this, the market immediately felt that the global economic tensions might ease, leading funds to flow into risk assets, with Bitcoin being a prime example of high-risk, high-reward investments.
Speaking of policy changes, we must mention a significant move by New Hampshire. This state has become the first in the U.S. to allow government investment in cryptocurrencies, with the governor personally signing a bill allowing state funds to be allocated to digital assets such as Bitcoin. This is an important signal, indicating that even government institutions are starting to take cryptocurrencies seriously. Once this news broke, institutional investors became even more excited, believing that more significant funds would surely enter the market in the future.
Even more excitingly, Zhao Changpeng, the founder of Binance, predicted that Bitcoin could rise to $500,000 or even $1 million in this bull market! This prediction is not made lightly; he listed several important reasons: the increasing flow of funds into the Bitcoin market through ETFs, governments quietly accumulating Bitcoin, and countries like El Salvador and Bhutan officially recognizing Bitcoin as legal tender. All these factors combined suggest that the upside potential for Bitcoin should not be underestimated.
Besides the outstanding performance of Bitcoin, other smaller coins have also been active. Ethereum steadily rose by 1%, reaching $1,824; Solana also showed strength, increasing by 0.9% to $145; BNB, the favored token of its exchange, rose by 0.58%, surpassing the $600 mark. The most impressive performance has to be XRP, which rose by 1.44% in one day, with a weekly increase of 4.46%. However, the most insane gains were seen in those smaller coins, such as LAYER and ALPACA, which skyrocketed by 30%, and even meme coins like GORK and Fartcoin surged on decentralized exchanges.
The overall trading volume in the market is exceptionally high, with a 24-hour total trading volume surging by 27.35%, reaching $81.48 billion. This indicates that although there are many uncertainties in the global economy, investors' enthusiasm for cryptocurrencies remains undiminished. The next most concerning issue for everyone is the Federal Reserve's actions; market expectations indicate a 97% probability of maintaining interest rates. Although the overall performance of altcoins has not been particularly spectacular yet, if Bitcoin can indeed break through the psychological threshold of $100,000, the entire market could potentially usher in a more frenzied trend.
When it comes to investing in cryptocurrencies, there are several key points to pay special attention to. First, the volatility is too great, and you might experience a roller coaster ride in just one day. Secondly, be wary of those small coins that suddenly spike; many are manipulated by big players, and ordinary investors can easily get hurt. Additionally, it is crucial to manage your funds well; never invest all your money, and definitely don't borrow money to invest. Lastly, choose reliable trading platforms; the market is mixed, so make sure to select well-established exchanges with good reputations.
For ordinary investors, if you want to participate in this wave of market activity, consider dollar-cost averaging into mainstream coins like Bitcoin or Ethereum. While you may not achieve the explosive gains of those small coins, the risks are significantly lower. Moreover, pay close attention to industry news and policy changes, such as various countries' regulatory attitudes toward cryptocurrencies and the movements of large institutions, as these will have a major impact on the market.
Overall, the current cryptocurrency market is at a crucial juncture. Whether Bitcoin can break through the $100,000 mark, whether institutional funds will continue to flow in, and how the global economic situation will evolve are all factors that will determine the market's direction in the coming period. For investors, it is essential to seize opportunities while managing risks to stand firm in the volatile crypto market.
