时间：2024-02-29|浏览：285
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Bitcoin experienced a crazy night on Wednesday, rising from US$57,000 to US$64,000 in one fell swoop. However, at 12:30 ET, Bitcoin crashed, falling US$5,000 in a few minutes. Futures trading volume surged at the price peak. rose, and so did cryptocurrency-related stocks.
Bitcoin futures trading volume surges
Coinbase is shocked by the "account 0 yuan shock"
According to data from CoinMarketCap.com, Bitcoin’s trading volume has surged to more than $79 billion in the past 24 hours, an increase of nearly 60%.
As expected, Coinbase, the largest digital asset exchange in the United States, went down again last night due to a surge in trading volume. Some users were surprised to see the balance of their accounts on Coinbase as $0.00. Bitcoin’s gains were partially dampened as a result. Bitcoin’s rapid intraday plunge also coincides with the timing of the outage reports.
However, Coinbase quickly explained: “We are aware that some users may see a zero balance in their Coinbase account and may encounter errors when buying or selling. Our team is investigating this issue and will provide support soon. Update. Your assets are safe." It later added that trading activity had started to return to normal.
The shocking numbers behind the crazy market
In the past 24 hours, the total cryptocurrency market capitalization increased by 2.85% to reach $2.19 trillion. Ethereum has also been on a strong run lately, surpassing $3,300 for the first time since April 2022. Ethereum's current market capitalization has surpassed ExxonMobil, and Bitcoin has surpassed Meta.
Additionally, over the past few days, Bitcoin has reached all-time highs against currencies such as the Japanese yen, Malaysian ringgit, Indian rupee, Taiwanese won, Chilean peso, Australian dollar, South African rand, Norwegian krone, and Turkish lira. “It’s pretty crazy,” said Ryan Kim, head of derivatives at digital asset prime broker FalconX.
Bitcoin has gained about 40% this year. At the heart of what’s driving Bitcoin to record highs is a simple principle of economics: supply and demand. The Bitcoin spot ETF has attracted more than $6 billion in funding since its launch. The surge in cryptocurrency demand caused by the new ETF far exceeds the amount of Bitcoin that long-term holders are willing to sell.
This is what ignited the fire in the cryptocurrency market, fueled by traders chasing upward momentum, covering short positions and investing more in leveraged bets to continue the bullish run. Crypto short positions have been liquidated for $275 million in the past three days.
“We’re starting to see a pretty clear FOMO type of rally,” said Zaheer Ebtikar, founder of crypto fund Split Capital. “More and more people are being persuaded to buy.” This all came to a head in the cryptocurrency market on Wednesday.
According to a report released by on-chain data analytics company CryptoQuant on February 14, 75% of new Bitcoin investments are expected to come from U.S. Bitcoin spot ETFs. Nine new Bitcoin ETFs saw total trading volume exceed $2 billion for the second consecutive day on February 28. According to Balchunas’ X post, BlackRock’s iShares Bitcoin ETF (IBIT) reached more than 100,000 individual trades on February 27, a significant increase from an average of 30,000 to 60,000 trades per day.
According to Mikkel Morch, founder of digital asset investment fund ARK36, MicroStrategy’s recent buying has mainly driven this rally, which amounts to institutional recognition. He said the rally was more than just a number on a chart, it was a declaration of confidence from institutional investors in the transformative potential of cryptocurrencies.
Market outlook research and judgment
Bitcoin has outperformed traditional assets such as stocks and gold so far in 2024. Bitcoin has been rising even though investors have lowered their expectations for monetary policy easing this year, as evidenced by rising U.S. Treasury yields.
“This reversal is all the more impressive considering central banks have signaled their intention to keep interest rates higher for longer, undermining the theory that the next crypto bull market will be driven by lower interest rates.” Dexterity Capital Quantitative Trading Co. said founder Michael Safai.
CoinTelegraph reports that Bitcoin’s price performance is largely due to market expectations for the upcoming halving event, which historically tends to lead to Buying activity increases.
Heavy inflows into Bitcoin ETFs have prompted some industry observers to warn of a supply squeeze as miners are in short supply of new coins. Some analysts say that about 80% of Bitcoin’s supply has been out of circulation over the past six months, which may have exacerbated the squeeze and added to upward pressure on prices.
Nine new spot ETFs currently hold more than 300,000 Bitcoins, seven times the number of newly mined coins since January 11. After the halving, which is expected to take place at the end of April, the number of newly mined coins per day will be reduced from the current 900 to 450. If this demand remains constant and the supply of new coins is cut in half, proponents predict there is room for price growth.
But it is worth noting that the last time Bitcoin traded above $60,000 was on November 12, 2021. After that, the price of Bitcoin began to reverse, falling by more than 67%, reaching a low of $19,297 in early April 2022. Cryptocurrency funding rates (an indicator of short-selling demand) are currently rising like crazy.
According to a cryptocurrency analyst who goes by the pseudonym Rekt Capital, a “pre-halving retracement” is still possible for Bitcoin prices. The pseudonymous analyst added that based on historical market data, the market has not yet priced in the upcoming Bitcoin halving. Rekt Capital shared this view in a February 28 article, saying that major Bitcoin fluctuations typically occur after halvings, not before.
Some observers have warned that the speed at which Bitcoin has risen leaves investors vulnerable to the boom and bust cycles that have become emblematic of the cryptocurrency.
Jaime Baeza, founder of crypto hedge fund AnB Investments, said: “The volatility is very high, and as the derivatives base and funding rates suggest, the leverage is very high at the moment, so I wouldn’t be surprised by a significant price correction, maybe 20%. Or more. Still, I wouldn’t go short while prices continue to rise at this rate.”
Article forwarded from: Golden Ten Data
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