On march 5th of american eastern time, bitcoin fell after innovation! A drop of over 10 per cent in 24 hours resulted in the detonation of nearly 320,000 people worldwide。
A one-time breakthrough of $69,000 in the bitcoin drive reached a record high, but then fell sharply, falling over 10 per cent in the daytime and currently near $63851。
According to statistics, bitcoin has so far increased by 62. 64 per cent. According to alex thorn, research director of galaxy digital, “bitcoin is once again high, indicating that it will never disappear. In its 15 years of existence, bitcoin has experienced four retreats of more than 75 per cent in size, but has been able to rebound significantly each time.”
Bitcoin had previously recorded $68,999. 99 each in november 2021. After reaching the highest point in history, bitcoin went down, touching the low point of $16,000 at the end of 2022, until early 2023, when the bitcoin market was warmed up, and again in december 2023, prices crossed the $40,000 threshold. Bitcoin prices have accelerated since mid-february。
Bitcoin in half = going up? There are two main reasons for this boom
According to the securities times, in april there will be a new round of “minus half” of bitcoin, which will be an important incentive to accelerate the rise of bitcoin. The “minus half” is to halve the incentives for mining, which occur approximately every four years, depending on the rate of block generation of the bitcoin network. This will reduce the supply of bitcoin, by which time the block incentive will be reduced from 6. 25 (btc) to 3. 125 (btc) by 23 april 2024。
This situation has historically been favourable in comparison with the price of ttcos, and in anticipation of a reduction in supply, before the april “half” event, traders have been pouring into the bitcoin market in order to benefit from reduced supply prices。
However, the issuance of the bitcoin etf in january this year was the key factor triggering the outbreak. Prior to that, on 11 january 2024, the united states sec had officially approved 11 spot-in-kind etf applications in bitcoin, including belet。
This decision would allow ordinary investors to buy and sell bitcoin as easily as stock and mutual funds. Prior to this, investors in the encrypted currency market were dominated by “scrambles”, and the arrival of these giants declared that the “regular army” was accelerating to the market, generating additional capital. The new initiative lowered the purchase threshold for bitcoin and also attracted more institutional and bulk investors to the market. In addition, the granting of listings has increased the legitimacy of encrypted assets, contributing to the gradual increase in the price of bitcoin。
Data show that inflows to the bitcoin etf reached $5. 9 billion in february. Since its launch on 11 january, there have been $7. 4 billion in inflows from bitcoin etf, compared with $2. 9 billion from gold etf during the same period. The market speculates that some market investors have chosen to sell gold and buy bitcoin etf。
Zhao wei, a senior researcher at the okx institute, reported that the recent landmark victory, influenced by the approval by the sec of the real bitcoin etf, has resulted in traditional voucher dealers officially opening up easy bitcoin for traditional financial individuals and institutional investors, boosting the confidence of encryption practitioners while at the same time instilling enormous attention and mobility in the encryption industry, which has led to a significant influx of additional funds and is a key factor in the recent surge in bitcoin。
Image source visual china
Prices keep going up, and there's room for movement
According to the international financial journal, the executive commissioner of the china computer institute's sub-committee on block chains considered that: “in the short term, the possibility of a further increase in the price of bitcoin is still substantial, with some room for increase. In the long run, with the further expansion of the bitcoin consensus, there will be an increasing number of institutions and individuals that will be used as asset management and configuration tools, and therefore their prices will inevitably rise further in the long run.”
The co-chair of the china communications industry association's block chains sub-committee, yu jia ning, is also “optimizing” the future development of the digital asset market. He indicated that the impact of the spot etf in bitcoin could be compared to the gold etf. Since the launch of the gold etf, the gold market has experienced long-term gains and witnessed significant price increases. Bitcoin spot etfs may also be on a similar development trajectory, bringing long-term growth potential to markets。
However, jia ning also noted that macroeconomic conditions, particularly global monetary policy and inflation rates, must be taken into account, and that these factors have historically had far-reaching effects on the price of tts. Thus, while some agencies are optimistic about the future performance of the tt$, there is significant uncertainty about this projection. This requires potential investors, when considering investment in bitcoin, to see the high risk behind them through a high rate of return and not to be controlled by fomo (fear of losing opportunity)。
It is important to note that bitcoin, as a “leading sheep” in the digital asset market, often has a significant impact on the entire digital asset market. While the volume of real bitcoin etf transactions has risen dramatically, the volume of transactions of digital assets such as taffy and dog coins is moving towards a new stage in history。
As more and more encrypted assets move into bulk trading ports, this market, while gradually mature, remains far more risky than traditional financial markets。
Consolidated from the china foundation, the securities times, news, the associated press, etc
