Bitcoin reaches new peaks in market capitalization, surpassing silver and gaining the position of the eighth most capitalized asset globally.
This overtaking was temporary, but it marks a significant moment in the financial landscape. Let’s see all the details below.
Summary
Bitcoin Market Capitalization: Silver becomes ninth behind BTC
As anticipated, recently the market capitalization of Bitcoin reached a new all-time high, reaching the figure of 1.350 billion dollars.
According to CoinMarketCap, the main cryptocurrency has recorded an increase of over 17% in the weekly chart. Following this new all-time high, Bitcoin briefly conquered the eighth position among the most capitalized assets in the world.
Therefore, temporarily surpassing the market capitalization of 1.347 billion dollars of silver, the second most precious metal globally, as reported by the data from CompaniesMarketCap.
The above spike followed one day after Bitcoin’s daily closing at $68,245, surpassing the previous closing record of $67,525 on November 8, 2021.
These results reinforce analysts’ expectations, who hypothesize a potential reaching of $100,000 by the end of 2024.
ETFs lead the bullish trend and set records in open interest
The recently approved US Exchange Traded Funds (ETFs) on Bitcoin have been indicated as one of the main reasons for this bullish trend, according to a research report from March 4th elaborated by analysts from Bitfinex:
“February saw a significant 44% spike for BTC, reflecting a significant positive momentum from December 2020. The influx of $7.5 billion into Bitcoin ETFs is not only driving market growth, but also signaling a positive outlook and the potential for continued capital inflows.”
According to Bitfinex analysts, the open interest on centralized exchanges for Bitcoin futures has reached record levels, indicating investors’ strong confidence in a lasting rally.
“The recent surge in open interest has surpassed the levels recorded in November 2021, when BTC reached its all-time high of nearly $69,000. On Friday, March 1, the total open interest for Bitcoin futures contracts exceeded $26 billion, surpassing the previous record set in the last quarter of 2021 of $24 billion.”
Furthermore, the previous all-time high had been reached one day after the announcement of MicroStrategy, the largest Bitcoin holding company.
Specifically, it was about raising $600 million as part of its plan to purchase additional Bitcoin. The funds will be issued in the form of senior convertible bonds, as announced by CEO Michael Saylor.
Hong Kong: boom of spot ETFs on Bitcoin and Ethereum
The cryptocurrency market in Hong Kong is experiencing rapid growth, driven by regulatory approval that paves the way for new projects, including spot ETFs on Bitcoin and Ethereum.
Ten financial institutions, including Harvest Finance, have scheduled requests for spot Bitcoin ETFs, ready to be quickly launched in the financial context of Hong Kong.
Recent reports indicate that the city could even surpass the United States in launching spot ETFs on Ethereum. In particular, Hong Kong is among the financial institutions aiming to launch as many as 11 spot ETFs on Bitcoin.
According to local sources, dated March 11, the sector is urging for a quick action, focusing particularly on the approval of spot ETFs, including those based on Ethereum.
After the approval of 11 spot Bitcoin ETFs in the United States, the adoption of Bitcoin and cryptocurrencies has gained momentum.
Net inflows have exceeded 9.5 billion dollars, bringing total assets under management (AUM) to over 55 billion dollars. BlackRock’s Bitcoin ETF has surpassed Michael Saylor’s MicroStrategy Bitcoin assets.
With the growing adoption in Hong Kong and regulatory support, the United States is preparing to launch a spot ETF on Ethereum. According to experts, the approval of this ETF is expected by the end of May.
Hong Kong, ambitious, aims to excel despite the growing uncertainty about Ethereum ETFs in the United States, with prospects for launching spot ETFs and derivatives in the near future.
Weng Xiaoqi, COO of the HashKey group, stated:
“The six-month delay on spot ETFs also means that the entry of US capital into the market will occur six months later. At that point, they will have to face higher purchase costs and entry points and will have to bear the risk of being tied up by US capital.”
