Bitcoin fever continues to heat up, with a 35-day increase of more than 65%

From January 24, 2024 to February 28, 2024, Bitcoin surged from US$38,550 to US$64,480 in 35 days, an increase of more than 65%.

Although it has been less than 2 months since the Bitcoin halving

"Bitcoin halving time is expected to be 2024.5.4"

But the buying demand has far exceeded the daily supply. Since the Bitcoin spot ETF was listed on January 11, the capital inflow has reached 7.4 billion US dollars. Funds are pouring in, and the trading volume has continuously set new highs. On February 28, it set a record of nearly 7.7 billion US dollars in a single day.

While more funds are flowing into the cryptocurrency field in the United States through ETFs, greater risk events are also brewing. Bitcoin is highly volatile, and different countries and regions have very different regulatory policies on digital assets. Investors must not blindly enter the market. On the 29th alone, when Bitcoin broke through its high intraday, the price dropped from US$64,480 to US$58,657 in one hour. Nearly 180,000 people in the Bitcoin market were liquidated.

Since the beginning of this year, Bitcoin has entered a stage of accelerated rise, and the trading craze continues to heat up. In just 35 days, Bitcoin rose by 65%, with the price exceeding $64,000, setting a new high since November 2021. If calculated based on the RMB exchange rate, one Bitcoin once exceeded 470,000 RMB.

Bitcoin will usher in a new round of "halving" in May, which will become an important incentive for Bitcoin to accelerate its rise. "Halving" is a halving of mining rewards, which occurs approximately every four years, depending on the block generation speed of the Bitcoin network. This will reduce the supply of Bitcoin, and it is expected that on April 23, 2024, the block reward will drop from 6.25 (BTC) to 3.125 (BTC).

This situation has historically been positive for Bitcoin prices, with traders rushing into the Bitcoin market ahead of May’s “halving” event in anticipation of reduced supply, hoping to profit when supply decreases and prices rise. However, the issuance of the Bitcoin ETF in January this year was the key factor that triggered the market outbreak. Previously, on January 11, 2024, the U.S. Securities and Exchange Commission officially approved 11 Bitcoin spot ETF applications, including BlackRock and other institutions. Currently there are more than 11

This decision will allow ordinary investors to buy and sell Bitcoin as easily as stocks and mutual funds. Before this, investors in the cryptocurrency market were mainly "scatterbrained soldiers and generals", and the entry of these asset management giants announced that the "regular army" is accelerating into the market, bringing more incremental funds. The new measures have lowered the threshold for buying Bitcoin and attracted more institutional and retail investors to enter the market. In addition, the approval of the listing has also enhanced the legitimacy of encrypted assets, thereby boosting the price of Bitcoin.

Data shows that the funds flowing into Bitcoin ETFs reached $5.9 billion in February. Since its listing on January 11, the inflow of funds into Bitcoin ETFs has been $7.4 billion, while the outflow of gold ETFs in the same period was $2.9 billion. The market speculates that some market investors choose to sell gold ETFs and buy Bitcoin ETFs.

The daily trading volume is nearly US$7.7 billion

This surge in liquidity amid a significant reduction in supply has led to unprecedentedly high market expectations.

According to data from February 29, Bitcoin spot ETFs set a new record of $7.69 billion in daily trading volume, with BlackRock ranking first with a trading volume of $3.2 billion. This figure easily surpassed the previous single-day trading volume record of $4.66 billion, which was set on the first day of the listing of Bitcoin spot ETFs.

On February 26, Microstrategy, the listed company with the largest Bitcoin holdings in the world, purchased an additional 3,000 Bitcoins. The founder of the company said in a statement that between February 15 and February 25, it purchased about 3,000 Bitcoins at a price of about $155.4 million, with an average price of about $51,813 per Bitcoin.

Currently, the demand for buying Bitcoin spot ETFs far exceeds the daily supply, resulting in a decoupling of supply and demand. On February 28, the number of Bitcoin spot ETF purchases reached 11,211, while the daily supply of 900 Bitcoins has reached the maximum capacity of miners. The 10-fold difference shows that Bitcoin spot ETFs are attracting more funds into the cryptocurrency field.

As the "leader" in the digital asset market, Bitcoin's price fluctuations often have a significant impact on the entire digital asset market. While the trading volume of Bitcoin spot ETFs has increased significantly, the trading volume of digital assets such as Ethereum and Dogecoin is also moving towards a new historical level.

Bitcoin craze needs "cold water" and "big heart"

As more and more crypto assets enter the retail trading portal, this market is gradually maturing, but the risks are still much higher than traditional financial markets.

Since the advent of Bitcoin, the price has been fluctuating greatly, with sharp rises and falls being the norm, and the multiple risks facing the market cannot be ignored. Previously, the highest point in Bitcoin's history occurred on November 10, 2021, when it was close to $69,000. After that, affected by the Federal Reserve's aggressive interest rate hike cycle, the closure of some industry trading platforms, and stricter supervision, the price has been falling all the way.

In November 2022, it fell below $16,000, hitting the lowest point of this round of decline. Since then, the price of Bitcoin has rebounded and has been fluctuating around $30,000. In mid-October 2023, it reached a low of $26,000. Until December 2023, the price broke through the $40,000 mark again. Since mid-February this year, the price of Bitcoin has accelerated to $64,000, just one step away from its historical high.

Bitcoin is so volatile, and different countries and regions have different regulatory policies on digital assets. Investors must not blindly enter the market. Recent examples show that even when Bitcoin prices hit new highs, they are still full of risks.

💸If you are interested in trading technology and want to have your own trading system like me, whether it is a long-term or short-term transaction, you can handle it with ease! Come to my community to communicate and let us have more Bitcoin together💸

💕 Remember to follow me💕 Your attention gives me more motivation to share useful information with everyone! I will share the wealth code at any time💸 Remember to check it out💰#热门话题 #減半行情 #比特幣減半 #BTC‬