In recent weeks, Bitcoin (BTC) has achieved a series of milestones, propelling it further into the mainstream and sparking conversations about its future trajectory. Bitcoin now ranks among the top ten most valuable assets, with a market capitalization of $1.3 trillion.
January 11, 2024, marked a historical day for Bitcoin when the United States Securities and Exchange Commission (SEC) approved the country’s first spot Bitcoin exchange-traded funds. This meant that retail investors could now invest in Bitcoin without having to worry about buying or storage methods.
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Historical Highs Mark a New Era for Bitcoin
Since the approval of the ETFs, the demand for Bitcoin has far exceeded the amount that holders are willing to sell. This imbalance has triggered a rally, with traders placing leveraged bets on the price’s continued rise adding fuel to the fire.
February 29, 2024: Bitcoin Surpasses $60,000 For The First Time In 2 Years
On February 29, Bitcoin reached $60,000 for the first time since November 2021. This coincided with increased trading activity, which overloaded and eventually crashed the major exchange, Coinbase.
On the same day, ETF trading volume soared past $7.5 billion, more than doubling the previous record of $3 billion.
March 5, 2024: Bitcoin Hits A New All-Time High, ETFs Record Busiest Day Since Launch
On March 5, Bitcoin rallied past 2021’s record high of $68,789, reaching a new high of $69,210 before falling to around $61,000.
ETFs also recorded a busy day, with trading volume exceeding $10 billion for the first time. BlackRock’s IBIT ETF had the highest trading volume ($3.8 billion), making it the first issuer of a spot Bitcoin ETF to reach $10 billion in assets.
Since then, Bitcoin has kept hitting new records, finally peaking at $73,628 on March 14. Although BTC has fallen to around $68,000 at the time of writing, the asset appears to be on the verge of a new upward trend.
Bitcoin Briefly Overtakes Silver To Become 8th Largest Asset In The World
Bitcoin’s recent price movements have cemented its status as a major player in the global financial landscape. BTC is now the world’s 13th largest currency, surpassing the Russian ruble and Swiss franc.
Most notably, the asset briefly surpassed Silver as its price rose above $71,000, becoming the world’s eighth-largest asset with a market capitalization of $1.408 trillion. At the time, the market capitalization of silver was $1.381 trillion.
Silver, which now has a market cap of $1.419 trillion, has since regained its position following Bitcoin’s recent drop to $1.334 trillion. Bitcoin bulls remain optimistic about the asset’s potential, hoping to see it recover and surpass the likes of Alphabet, the parent company of Google ($1.761 trillion), and Amazon ($1.811 trillion). However, it still has a long way to go before it can dethrone gold as the world’s largest asset by market capitalization. Gold currently sits at a market cap of $14.435 trillion.
Satoshi-Era Bitcoin On The Move
Bitcoin’s rise to a new record high and subsequent drop on March 5 could be attributed, in part, to early miners cashing out.
According to data from CryptoQuant, 1,000 bitcoins worth approximately $69 million were transferred to Coinbase by a wallet address that has existed since 2010, just before BTC broke its all-time high.
Moving such a large amount of old coins to a major exchange like Coinbase is often a sign of selling intent. And sure enough, a selloff followed, sending the price of Bitcoin tumbling. This resulted in large-scale liquidations for leveraged long positions, with over $1 billion in liquidations recorded on Binance alone.
What The Future Holds For Bitcoin
The recent developments surrounding Bitcoin paint a picture of a maturing asset class with immense potential. Spot ETF approval, becoming a top-10 asset, breaking previous highs and the return of satoshi-era players all point to a thriving ecosystem.
But that is not all; Bitcoin continues to win globally. In 2021, El Salvador adopted Bitcoin as a legal tender. Since then, the country has accumulated over 5690 Bitcoin (worth roughly $387 million) as a treasury asset. President Nayib Bukele recently reiterated his commitment to the ‘1 Bitcoin a Day’ program, stating El Salvador will keep buying Bitcoin daily until it becomes too expensive to purchase with fiat currencies.
In addition, top presidential candidates in the United States have expressed support for the asset. In an interview with CNBC, former President Trump recently described it as an “additional form of currency” with a lot of use. Trump claimed that his administration would not use regulatory authority to target Bitcoin and other cryptocurrencies. “I have seen there has been a lot of use of that, and I’m not sure that I’d want to take it away at this point,” said the Republican aspirant.
This accelerated global adoption, coupled with the asset’s capped supply, could fuel the supply-demand imbalance further, translating into a parabolic growth in the asset’s value.
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