Bitcoin's crazy surge, uncovering the reasons behind it!
Folks, the recent surge of Bitcoin is too crazy, directly breaking through the 110,000 mark, making people excited! Today, let's delve into why it is rising so sharply.
I. Significant Breakthroughs at the Policy Level
The U.S. stablecoin legislation sees a ray of hope, (GENIUS Stablecoin Act) has passed the Senate procedural motion and is about to enter the full voting stage. This is the first federal legislation in the U.S. regarding stablecoins, and once implemented, it means that the stablecoin market will be brought under a strict regulatory framework and gain legal status. This is a strong boost for the entire cryptocurrency industry, paving the way for funds to enter. Meanwhile, Hong Kong (Stablecoin Ordinance) has taken the lead in passing, providing the market with a 'reassurance pill' and enhancing global investors' confidence in the compliance prospects of cryptocurrencies, with a large influx of funds ready to enter.
II. Institutional Funds Pouring In
1. Public Companies Investing Heavily: Nasdaq-listed company Cosmos Health has reached a securities purchase agreement worth up to $300 million with U.S. institutional investors, starting an ETH treasury strategy. Traditional companies like this are continuously increasing their stakes in crypto assets, reflecting a long-term optimism for the crypto market, injecting strong cash flow and positive signals into the market.
2. Asset Management Giants Continue to Accumulate: Renowned financial institution BlackRock holds over 620,000 Bitcoins, and MicroStrategy holds 580,000, continuously hoarding coins and locking up a large amount of circulating supply. The collective entry of institutions has boosted overall market sentiment, triggering retail investors to follow suit, further driving up Bitcoin prices.
III. Favorable Macroeconomic Environment
1. Global Liquidity Easing Expectations: The expectation of interest rate cuts by the Federal Reserve continues to strengthen, market liquidity is increasing, and investors are actively seeking new investment channels to hedge against the risk of fiat currency depreciation. The fixed supply and decentralized nature of Bitcoin make it an ideal safe-haven asset, attracting a large influx of funds.
2. Geopolitical Factors Stimulating: The current international geopolitical situation is complex and changeable, economic uncertainty is increasing, and investors have strong risk-averse sentiments. Bitcoin, as 'digital gold', has become a safe haven for funds, with a significant increase in demand driving up prices.
IV. Changes in Market Supply and Demand Relationship
The total supply of Bitcoin is capped at 21 million coins, and the 'halving' event that occurs every four years continues to reduce the supply of new coins. After Bitcoin's fourth halving in April 2024, its scarcity will become even more pronounced. With the current non-liquid supply of Bitcoin reaching an all-time high, it means that long-term holders dominate the market, reducing the number of Bitcoins available for trading, creating a supply-demand imbalance that drives prices continuously upward.
From the current situation, Bitcoin still has room for growth. Citigroup predicts it may rise to $135,000 by the end of the year, and in an optimistic scenario, it could soar to $199,000; Standard Chartered boldly estimates that Bitcoin could reach $200,000 by the end of the fourth quarter. However, the cryptocurrency market is high-risk and highly volatile, so everyone must exercise caution when investing!#比特币流动性危机 #加密市场回调 #美国加征关税 #BTC
