Bitcoin is back among the top ten assets in the world by market capitalization

Author: Bitcoin

Data shows that Bitcoin has returned to the 10th place in the global asset market value rankings with a market value of US$949.8 billion, surpassing Berkshire Hathaway· Hathaway's market capitalization ($863.28 billion) currently ranks behind Meta Platforms ($1.193 trillion).

Go crazy! Does Bitcoin also have a Spring Festival market?

On the first day of the Lunar New Year in the Year of the Dragon, the Bitcoin market ushered in a "wild" Spring Festival price surge!

On February 10, the price of Bitcoin continued to rise rapidly, once exceeding the US$48,000 mark per coin at 2 a.m. Beijing time on the 10th. Some investors believe that around the Chinese New Year, the Bitcoin market has always had a certain "Spring Festival effect." Data from the past nine years shows that Bitcoin prices have increased to varying degrees during the Spring Festival.

On January 11 this year, after the U.S. Securities and Exchange Commission (SEC) approved the listing of a spot Bitcoin ETF, the price of Bitcoin quickly shot up to nearly $49,000. /coin mark, and then quickly fell back until it rebounded recently. At the same time, the U.S. Securities and Exchange Commission’s approval of 11 Bitcoin ETFs for listing and trading has also triggered concerns among some in the country’s investment industry about new market risks. The chairman of the U.S. Securities and Exchange Commission has previously warned that Bitcoin is still an “unstable currency.” assets”, investors should remain vigilant.

Bitcoin surges during the Spring Festival

In the early morning of February 10, the lunar calendar has just entered the dragon On the first day of the new year, the price of Bitcoin rose rapidly, once reaching $48,000 per coin. This was the first time since January 11. In the past 5 days, Bitcoin has increased by nearly 10%.

According to the Hong Kong Economic Daily, Markus Thielen, founder and research director of the cryptocurrency investment research institution "10x Research", previously predicted In the past 9 years, if you buy Bitcoin 3 days before the start of the Lunar New Year and sell it 10 days after the start of the Lunar New Year, you will get varying degrees of gains. According to its statistics, in the past nine years, 2021 has had the highest increase, with the highest increase of 24.3%. Even during the Spring Festival in 2019, which performed the worst, there was an increase of about 3%.

(Image source: 10x Research research report)

According to Marcus It was previously stated that with the arrival of the Lunar New Year, it also brings bullish sentiment towards Bitcoin. He predicts that the price of Bitcoin may surge to $48,000 per coin in the coming days, thanks to its historical performance during this holiday period.

In addition to the Lunar New Year market, Bitcoin also has other rising factors. Bloomberg data shows that on February 7, the Bitcoin ETF has achieved net inflows for nine consecutive trading days. Analysts predict that Bitcoin is about to be halved in April this year (that is, the reward for mining a new block is halved), which may gather momentum in the next few weeks, helping to push Bitcoin to break through the important psychological mark of US$50,000 per coin.

Cathie Wood, the head of the American Ark Fund, previously expected that the price of Bitcoin would reach 2030 by 2030 under the most optimistic scenario. It may reach US$1.5 million per coin in 2020, which is a full US$500,000 per coin higher than her previous expectation of US$1 million, which is also more than 30 times the current price of Bitcoin. Even in a pessimistic scenario, Wood believes that the price of Bitcoin may climb to $258,500 per coin, which is more than five times the current price.

However, JPMorgan Chase CEO Jamie Dimon once again reiterated his view that Bitcoin can’t do anything "Pet Stone", he previously said that the currency is a "decentralized Ponzi scheme." Dimon estimated that Bitcoin has its uses, but those include money laundering, fraud, tax avoidance and other financial crimes that move more than $100 billion annually.

Bitcoin ETF is still questioned after its listing

On January 11 this year, the U.S. Securities and Exchange Commission The meeting approved applications for 11 Bitcoin spot ETFs, including those from BlackRock and other institutions. After the news was officially announced, the price of Bitcoin surged again, briefly soaring to nearly $49,000 per coin, and then began to continue to fall until it rebounded again in recent days.

Shortly after the Bitcoin ETF was approved for listing and trading, U.S. Securities and Exchange Commission Chairman Gary Gensler stated that “Although the U.S. Securities and Exchange Commission has approved some Bitcoin The listing and trading of spot ETFs, but we have not approved or recognized Bitcoin. Bitcoin is a speculative and volatile asset. The approval of Bitcoin spot ETFs will bring more supervision." He also emphasized , investors should remain cautious about the risks of Bitcoin and products whose value is tied to cryptocurrencies.

Reuters recently issued an article saying that some experts said that the launch of Bitcoin ETF has deepened the connection between the volatile cryptocurrency market and the traditional financial system, and may Will bring unforeseen new risks. Citing evidence from previous ETF volatility events, some ETF experts said that if Bitcoin ETFs were widely adopted, these products could exacerbate Bitcoin price volatility during periods of market stress or create dislocations between ETFs and Bitcoin prices, thereby harming the financial system. Other parts pose risks.

Others say that the U.S. banking turmoil in 2023 shows that financial and cryptocurrency markets can pass risks to each other. For example, regulators said U.S. cryptocurrency lender Silvergate Bank liquidated after withdrawals triggered by the collapse of cryptocurrency exchange FTX, which in turn triggered a panic that led to the collapse of Signature Bank. At the same time, the collapse of Silicon Valley Bank triggered a run on USD Coin, a digital stablecoin pegged to the U.S. dollar.

"As investors put money into these products, it greatly increases the risk of greater interconnection between the core financial system and the cryptocurrency ecosystem." Dennis Kelleher, CEO of Better Markets, a non-profit organization in the US financial community, said that the organization had urged the US Securities and Exchange Commission to reject Bitcoin ETFs on the grounds that investors and the financial system were exposed to risks.

Antonio Sánchez Serrano, chief economist of the European Systemic Risk Board, the EU's financial risk regulator, said , Bitcoin ETFs may “particularly exacerbate” this volatility during times of market stress, and ETFs may generate other channels of systemic risk.

In addition, Microsoft co-founder Bill Gates also reminded ordinary investors in an interview that those who are not as wealthy as Musk should pay attention to 'Stay alert' on investing in cryptocurrency craze. Previously, Bill Gates also refuted some cryptocurrency projects, calling them scams "based on the fool theory."