In 24 hours, Bitcoin rose sharply by 10%, which is considered by many insiders to be a sign of bull market certainty. At 3 a.m. Beijing time, Bitcoin conducted a silent "late-night pull" and successfully broke through the important mark of $54,000. When the dawn of the morning fell, people thought that the market would take a short break, but Bitcoin once again showed its extraordinary vitality and broke through the $57,000 mark in a short period of time. The cumulative increase in 24 hours reached an astonishing 10.06%, setting a record high since January 2022.
This wave of rise is a continuation of the market trend since the Lunar New Year of 2024. Since the price of $43,000 on February 7, Bitcoin has risen by an astonishing 32.5% in just 20 days. This craze has even led to a general rise in the entire Bitcoin ecosystem tokens, among which STX has a 24-hour increase of 22.21%, RIF has increased by 15.97%, and ALEX has increased by as much as 20.8%.
Amazingly, the total liquidation of the entire network in the past 24 hours reached 335 million US dollars, of which short orders accounted for the majority, reaching 258 million US dollars. At the same time, the US stock market also showed a strong upward momentum, among which Coinbase (COIN.O)'s stock price has soared to 193.94 US dollars at the time of writing, a 24-hour increase of 27.96%; and Microstrategy's stock price has also climbed to 796.48 US dollars, and the 24-hour increase has exceeded 109%.
In the ranking of total BTC contract holdings, CME leads Binance by as much as $1.35 billion, with a 24-hour increase of 9.59%. As the market heats up, investors are eager to try, looking forward to a new round of generous returns.
On an ordinary Tuesday, the ETH Denver conference was held as scheduled. You thought that "every conference would have a drop", but BTC and ETH both broke through, and the price of Bitcoin denominated in RMB was even about to surpass its highest price in November 2021.
ETF net inflows
Since the SEC approved the Bitcoin ETF application on January 11, the prosperity of the crypto community has become more and more obvious. In the past 40 days, the listing of Bitcoin ETFs and the growth of net capital inflows have injected vitality into the entire market like the warm sunshine of spring. As of February 25, 2024, the number of Bitcoins held by 11 Bitcoin ETFs has grown steadily, from 619,491 to 732,549, with a total increase of 113,058 Bitcoins. This is like a picture scroll, depicting the trend of continued expansion of the scale of funds.
The total holdings of Bitcoin ETFs have reached 732,000 Bitcoins, and the scale of funds under management has also continued to rise, from US$28.59 billion to US$37.21 billion, a cumulative increase of US$8.6 billion. This data not only shows the confidence of the market, but also foreshadows the future prosperity. At present, the holdings of Bitcoin ETFs account for 3.73% of the total supply, which has surpassed the number of Bitcoins in the Binance exchange wallet address of 596,000. This is like a bright star, shining in the crypto market.
The top 30 Bitcoin spot exchanges hold about 1.2 million Bitcoins (excluding the number of ETF custody). Free entry without threshold, add vx: LSTT0111 or vx public account: If you want to eat soft rice, you can see from the net increase of 110,000 Bitcoins that the direct increase in circulation demand brought to the crypto market after the ETF is approved accounts for about 9.34%. This undoubtedly injected a strong impetus into the growth of Bitcoin prices.
According to the latest data, the total trading volume of 9 Bitcoin spot ETFs yesterday was about 2.4 billion US dollars, a record high since the first day of listing, slightly higher than the trading volume on the first day of listing, and about twice the recent daily average trading volume. This data is like an exciting piece of music, heralding the vitality and potential of the market.
Among them, the trading volume of IBIT, a Bitcoin spot ETF of iShares, a subsidiary of asset management giant BlackRock, reached a staggering $1.3 billion, ranking 11th among all ETFs (top 0.3%) and top 25 among stocks. Eric Balchunas, an ETF analyst at Bloomberg, posted on social media: "This is absolutely a crazy number for a newly listed ETF."
Since January 10, the Bitcoin held by BlackRock's IBIT has continued to grow, from 228 Bitcoins to 126,900 Bitcoins today. As the world's largest asset management company, it manages approximately $8.9 trillion in funds worldwide. Whether in terms of customer resources or brand effect, it is the most competitive among many ETF products. Currently, the Bitcoin ETFs managed by BlackRock and Fidelity Investments have held more than 190,000 Bitcoins held by MicroStrategy.
On February 26, MicroStrategy founder Michael Saylor said on his social platform that MicroStrategy bought 3,000 bitcoins from February 15 to 25, with an average purchase price of $51,813. So far, MicroStrategy holds a total of 193,000 bitcoins, with an average holding price of approximately $31,544. Earlier, Michael Saylor said in an interview that spot ETFs have opened the door for institutional capital to flow into the Bitcoin ecosystem. ETFs are promoting the digital transformation of capital, with hundreds of millions of dollars of capital flowing from the traditional analog ecosystem into the digital economy every day. He believes that "Bitcoin is an exit strategy (from the traditional ecosystem)."
Michael Saylor believes that Bitcoin's market value has just exceeded one trillion US dollars and is competing with asset classes such as gold, real estate and even the S&P index, all of which have market capitalizations many times higher than Bitcoin. He believes that Bitcoin itself is superior to all of the above as an asset, and there is no reason to sell in this case.
The market value of stablecoins continues to rise, and the expected benefits of halving are increasing
The market value of stablecoins continues to rise and is about to reach $140 billion, which is another major manifestation of the increase in market funds. In addition to the increasing demand for funds, the Bitcoin halving is also a catalyst for Bitcoin to reach its next high point. According to BTC.com, the current block height is nearly 50 days away from the Bitcoin halving. Historically, block rewards have brought potential selling pressure to the market, which may cause all newly mined Bitcoins to be sold, thereby affecting prices. But this round of halving is different from the past.
The current 6.25 bitcoins mined per block equates to about $14 billion per year (assuming a bitcoin price of $43,000). To maintain the current price, a corresponding buying pressure of $14 billion per year is required. After the halving, this demand will also be halved, with only 3.125 bitcoins mined per block, which is equivalent to a reduction to $7 billion per year, effectively reducing the selling pressure.
As mentioned above, with continued Bitcoin ecosystem adoption and maturity, net inflows remain stable, and ETF liquidity may play a certain role in offsetting the continued selling pressure from mining issuance. Sensitivity analysis of daily net inflows ranging from $1 million to $10 million shows that at the higher end, the reduction in selling pressure may reflect the effect of another halving, fundamentally shifting Bitcoin's market structure in a positive way.
As Bitcoin soared across the board, some were happy while others were sad. The total amount of liquidations on the entire network exceeded US$240 million, and more than 69,000 investors were liquidated.
One of the big Vs posted a screenshot of his own liquidation, saying that he was very regretful for misjudging the trend.
