A new high! Bitcoin stands at US$71,000 per coin, becoming the eighth largest asset in the world by market capitalization
On March 11, Bitcoin stood at US$71,000 per coin, rising more than 2% within the day and continuing to hit new highs. According to companiesmarketcap statistics, the market value of Bitcoin has risen to US$1.398 trillion, surpassing silver (US$1.380 trillion) and becoming the eighth largest asset in the world by market value.
A reporter from "Daily Economic News" noticed that Bitcoin will usher in a new round of "halving" next month (April 2024). Historically, the "halving" has been an important factor in driving the price of Bitcoin.
"Having" refers to the halving of the rewards obtained after producing new blocks, which occurs approximately every four years, depending on the block generation speed of the Bitcoin network. This will reduce the supply of Bitcoin, with the block reward expected to drop from 6.25 BTC to 3.125 BTC on April 23, 2024.
Regarding the upcoming "halving", Kevin, founder of Web3 CD and CEO of Full Speed Innovation Capital, pointed out in an interview with a reporter from "Daily Economic News" that "this round of Bitcoin prices is different from the previous one. The previous cryptocurrency bull market was all after the halving, but this time it is before the halving, so this round of market may go out in a different way from the previous ones. However, at least for now Look, the cryptocurrency market as a whole is still in a relatively disorderly state, and no one can better predict the next trend.”
Bitcoin prices continue to rise, is there room for further upside?
According to the International Finance News, Gao Chengshi, executive member of the Blockchain Committee of the China Computer Society, believes: "In the short term, the price of Bitcoin is likely to rise further, and there will be some room for growth. In the long term, As the Bitcoin consensus further expands, more and more institutions and individuals will use it as an asset management and allocation tool, so its price will inevitably rise further in the long run."
Yu Jianing, co-chairman of the China Communications Industry Association’s Blockchain Committee, is also “optimistic” about the future development of the digital asset market. He said that the impact of the Bitcoin spot ETF can be compared to that of the gold ETF. Since the launch of gold ETFs, the gold market has experienced a long period of positive growth and witnessed significant price gains.Bitcoin spot ETFs may also follow a similar trajectory, bringing long-term growth potential to the market.
However, Yu Jianing also pointed out that macroeconomic conditions, especially global monetary policy and inflation rates, must be taken into consideration. These factors have historically had a profound impact on Bitcoin prices. Therefore, while some institutions are optimistic about Bitcoin's future performance, there is significant uncertainty in this prediction. This requires potential investors to see the high risk behind the high yield when considering investing in Bitcoin, and not to be controlled by FOMO (fear of losing opportunity).
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