In the trading session on March 11 in the Asian market, Bitcoin (BTC) surprised investors when it increased by nearly 2.5% and surpassed the 70,000 USD/BTC mark (equivalent to nearly 1.8 billion VND).
Specifically, at 12:50 on March 11, Bitcoin reached 71,150 USD.
The world's most popular cryptocurrency has increased by 11.2% in the past 7 days after a strong increase before. Since mid-October 2023, Bitcoin has increased nearly 1.7 times, from $26,750 to over $71,000/BTC as of now.
Since the beginning of February 2024, the world's largest digital currency has increased by more than 70%.
In the past, the digital currency Bitcoin set a record of 69,000 USD in November 2021 but then plummeted to 16,700 USD in November 2022.
Bitcoin has continued to soar and hit a historic high as the US dollar has turned to decline following signs of easing US monetary policy, despite strong cash flows into gold and stocks, including US stocks.
Gold prices have been setting new records recently. During the week of March 4-8, the world gold price increased by 4% compared to the previous week and closed at an all-time high of $2,180/ounce. Last week, there was a time when the spot gold price reached over $2,195/ounce (trading session on March 8).
The world's money flow is moving in an unpredictable direction. With a strong breakthrough since the beginning of the year, according to CoinMarketCap, the total capitalization value of Bitcoin has exceeded the threshold of 1,400 billion USD. This is the first time in history that the capitalization of Bitcoin has exceeded this threshold.
In addition to Bitcoin, many other digital currencies also increased sharply, such as Ethereum - ETH (up 15% in the past 7 days); BNB increased 27%... Ethereum's capitalization reached 481 billion USD, while BNB's capitalization reached 79 billion USD.
In total, the global digital currency capitalization as of March 11 reached $2,680 billion, exceeding $100 billion compared to the previous level in November 2021.
Storm shelter or a new bubble forming?
At present, many investors are quite surprised by the sharp increase in price of Bitcoin as well as other digital currencies.
Bitcoin's surge to $71,000, equivalent to VND1.8 billion, has attracted the attention of global investors.
The question is, where does the excitement for Bitcoin come from and is the price too high, posing a risk to latecomers?
In fact, Bitcoin started to increase sharply from the end of 2023 when this currency was officially allowed by the US regulator to establish an ETF investment fund in cryptocurrencies.
The sharp increase since early March is believed to be due to the halving event - scheduled to take place in April. This is an event that cuts miner rewards by 50% and occurs every 4 years.
In addition, the weakening of the USD also adds strength to Bitcoin.
Gold and Bitcoin prices soared and hit new highs after Federal Reserve Chairman Jerome Powell told Congress last weekend that the US is not far from being confident about inflation reaching its 2% target. This has reinforced expectations that the first interest rate cut could take place in the next few months.
Moreover, this Bitcoin price increase is quite different from the wave at the end of 2021. Instead of buying power coming from individual investors around the world like before, this time, the main players are large institutional investors.
On social network X (Twitter), Nathan McCauley, CEO of digital asset platform Anchorage Digital, said that traditional asset investment institutions have become new buyers and are the driving force for the market, no longer like previous bull cycles.
New spot Bitcoin ETFs have attracted $7.9 billion in digital assets since the US Securities and Exchange Commission (SEC) approved the funds on January 10, according to a report from Deutsche Bank, reported Forexlive.
Two companies that manage Bitcoin ETFs, Black Rock and Fidelity, also received about $14 billion in inflows.
According to experts on Forexlive, with Bitcoin at its current record high, many doubts are being raised. However, whether Bitcoin is still cheap or in a bubble, the clear fact is that Bitcoin is becoming more institutionalized. Bitcoin is attracting money from institutions.
On Coinglass, observers still believe that the signals show that the market is on the rise again. The number of open contracts is increasing rapidly and reaching an all-time high. New money is still pouring into the market.
BlackRock recently filed with the SEC to register a Bitcoin ETF for its Global Allocation Fund, a move that signals BlackRock is bringing Bitcoin into the mainstream.
However, many people believe that Bitcoin is just a speculative asset because it is difficult to determine its value.
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