After a brief consolidation, Bitcoin has once again hit a new all-time high.
On November 21, Bitcoin's rise was very strong, quickly breaking through the key price levels of $95,000, $96,000, $97,000 and $98,000, reaching a high of $98,438.9. However, around 11 p.m. that day, the price of Bitcoin fell back and fell below $97,000.
Driven by the strong performance of Bitcoin, the scale of cryptocurrency ETFs continues to expand, far exceeding market expectations. The US spot Bitcoin ETF has grown by nearly $100 billion in less than 10 months, while the Hong Kong spot Bitcoin ETF has also grown by $50 million since its listing.
After the U.S. stock market opened, digital currency concept stocks rose rapidly, but have fallen back so far, with an increase of 1.66%.
Bitcoin network liquidated $120 million
According to CoinGlass data, in the past 24 hours, the total liquidation amount of Bitcoin has reached 120 million US dollars, of which short orders have been liquidated for 94.444 million US dollars, and long orders have been liquidated for 25.591 million US dollars.
According to Bloomberg, supporters of the cryptocurrency industry are pushing the White House to add a new position specifically responsible for cryptocurrency policy. If successful, this will be the first position specifically responsible for cryptocurrency in the history of the White House.
Recently, the price of Bitcoin has performed strongly. Since November 5, the price of Bitcoin has risen from below $70,000, with a cumulative increase of about 40%.
In the U.S. stock market, Bitcoin concept stocks also performed well. On Wednesday local time, MicroStrategy's stock price rose by 10.05%, and its market value exceeded $100 billion for the first time. The stock has risen by more than 650% this year.
MicroStrategy is one of the largest U.S.-listed companies holding Bitcoin, with about $31 billion in digital asset reserves. The company is also accelerating its cryptocurrency purchase plans. On Wednesday, the company announced that it would increase the sale of convertible senior notes by nearly 50% to $2.6 billion to further purchase Bitcoin.
As Bitcoin continues to rise strongly, market speculators are looking forward to whether Bitcoin can break through $100,000. Supporters have been optimistic that Bitcoin can break through six figures. Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, has predicted that the price of Bitcoin will reach $125,000 by the end of this year and may reach $200,000 by the end of 2025.
However, there are still many traditional investors who are opposed to cryptocurrencies. Well-known investor Warren Buffett has publicly expressed his pessimism about Bitcoin many times. At the 2022 Berkshire Hathaway shareholders meeting, Buffett criticized cryptocurrencies, saying: "Unlike a farm or an apartment, Bitcoin does not create any value. Its price depends only on how much the next person willing to buy it pays. Cryptocurrency may seem magical now because of hype, but it has no production capacity itself."
Cryptocurrency ETFs are growing in size
The scale of cryptocurrency ETFs has grown significantly, attracting a lot of investment, especially in overseas markets. According to data from Bloomberg Industry Research, the US spot Bitcoin ETF has grown by nearly $100 billion in the past 10 months.
The inflow of funds is highly concentrated, and the BlackRock Bitcoin Trust ETF (iShares Bitcoin Trust ETF, code IBIT) has grown the fastest. As of November 18, the scale of BlackRock Bitcoin Trust ETF has reached US$40 billion, making it the world's largest cryptocurrency ETF. According to estimates, the holdings of the US Bitcoin ETF have reached 1.07 million bitcoins, which may have exceeded the holdings of Bitcoin founder Satoshi Nakamoto. As the price of Bitcoin continues to rise, cryptocurrency ETFs have achieved considerable returns in the short term. BlackRock Bitcoin Trust ETF has risen 32.76% in the past month and 52.85% in the past three months; Grayscale Bitcoin Trust ETF has also risen 33.26% and 52.7% respectively.
In the Hong Kong stock market, cryptocurrency ETFs also benefited from the wave of Bitcoin investment, and the market performance was quite strong. Bloomberg industry research data shows that since its listing on April 30, the China Bitcoin ETF has attracted US$58.26 million in capital inflows, and the Boshi Bitcoin ETF has attracted US$33.58 million in capital inflows. The new funds are very significant. As of November 20, the total assets of Bitcoin ETFs in the Hong Kong stock market have reached US$432 million, an increase of more than 70% compared to the initial fundraising of US$247 million. Among them, the China Bitcoin ETF has a scale of US$249 million, becoming the largest ETF, followed by the Boshi Bitcoin ETF and the Harvest Bitcoin ETF, with a scale of US$145 million and US$38 million respectively.
As the Bitcoin investment boom continues, cryptocurrency ETFs continue to emerge around the world. Earlier this year, iShares, Grayscale, Fidelity and other institutions under BlackRock issued spot Bitcoin ETFs; subsequently, China Asset Management (Hong Kong), Bosera Funds (International) and Harvest Global Asset Management in the Hong Kong market launched Bitcoin ETFs on April 30.
Industry insiders believe that the launch of cryptocurrency ETFs marks the deep integration of digital assets and traditional financial systems, and also enriches the types of investment products in the financial market. Morningstar pointed out that with the advancement of global financial technology and the gradual standardization of the cryptocurrency market, more and more investors have begun to recognize cryptocurrency ETFs, and more innovative cryptocurrency ETF products may be launched in the future, such as composite ETFs that combine different cryptocurrencies and incorporate multiple investment strategies, or theme ETFs for upstream and downstream companies in the cryptocurrency industry chain, etc., to provide investors with more diversified investment options.
However, the agency also reminded that challenges still exist. The cryptocurrency market is highly volatile, and large price fluctuations may exacerbate the volatility of the net value of cryptocurrency ETFs, bringing higher risks to investors. At the same time, cryptocurrency regulatory policies are still changing and improving, and industry participants need to pay attention to and comply with regulatory dynamics to ensure compliance operations.
