Bitcoin has once again surged to record-breaking highs, surpassing its previous peak of $68,640 in November 2021, according to CoinGecko data.
Bitcoin last changed hands above $68,730 and followed an 8% move in 24 hours
In the latest rally, Bitcoin changed hands above $68,730, marking an 8% increase within a 24-hour period. CoinGecko also reports that Bitcoin's market capitalization has soared to nearly $1.35 trillion, with the combined crypto market cap reaching $2.54 trillion, its highest level since November 2021.
The surge in Bitcoin resulted in $416 million worth of digital asset liquidations
The surge in Bitcoin's price has led to approximately $416 million in digital asset liquidations over the past day, including $250 million in short positions being margin called. BTC alone accounted for $132.5 million of these liquidations, as per CoinGlass.
Bitcoin has surged by 156.5% over the past five months
This significant milestone represents a remarkable 156.5% gain for Bitcoin over the past five months, rebounding from a low of $26,729 in mid-October. The sustained rally is largely attributed to the anticipation surrounding spot Bitcoin ETF applications, culminating in a frenzy of institutional activity following their debut on January 10.
Anticipation of Bitcoin Halving
Additionally, the fourth quadrennial Bitcoin halving is scheduled for next month. This event will reduce the rate of new BTC issuance by 50%, exerting bullish pressure on the supply and demand dynamics of Bitcoin markets.
Deflationary Pressure on Bitcoin
The forthcoming halving follows the deflationary pressure exerted by spot Bitcoin ETFs, which have been accumulating Bitcoin at a rate surpassing the current issuance by up to 1,000%.
BlackRock's Bitcoin ETF saw trading volume soar to $2.4 billion
Spot Bitcoin ETFs witnessed their second-highest daily trading volume on March 4, totaling $5.5 billion worth of shares traded. BlackRock's IBIT ETF alone accounted for $2.4 billion in volume, pushing its assets under management to $11 billion. These funds previously hit a record volume of $8 billion on February 28.
In summary, while Bitcoin's ascent to new heights is remarkable, it also raises concerns about potential market volatility and speculative behavior.