Breaking news! Bitcoin surges, 3.7 billion liquidated in one day!

Bitcoin has soared again, breaking through $55,000 today!

On March 10, the intraday price of Bitcoin exceeded $55,000, and Bitcoin once again went through a "roller coaster" market. It has risen by more than 20% from the last adjustment low of $45,000, hitting a two-week high, and its market value has once again exceeded $1 trillion.

Bitcoin surges higher again

Rising above $55,000 today

Since the end of February, market sentiment has begun to reverse, and multiple financial products have begun to collapse. As of 15:30 on February 28, Bitcoin has fallen rapidly to around $44,000. In about a day, about 96,000 Bitcoin holders suffered liquidation, with a total liquidation amount of about $668 million. However, after experiencing a flash crash two weeks ago, Bitcoin has rebounded and staged a V-shaped reversal. In March, Bitcoin rebounded, and on March 2, Bitcoin returned to $50,000. Today's price once surged to above $55,000 per coin. Although Bitcoin has risen and fallen sharply, it has continued to lead the capital market since September 2020, with an increase of more than 300% in 6 months, far higher than other major asset classes.

According to the latest data from AssetDash, the total market value of Bitcoin has surpassed Tencent and Facebook, returning to US$1 trillion, ranking sixth in the world.

As of press time, the price of Bitcoin has fallen back, hovering around $55,000. The rebound of Bitcoin prices for several consecutive trading days has undoubtedly added confidence and momentum to the market, and the depressed sentiment has gradually weakened.

Nearly 90,000 people had their positions liquidated for 3.715 billion

In the face of the recent "roller coaster" market with great ups and downs, some people are happy and some are worried. Some people have made a lot of money, while others have lost everything. According to statistics from Bitcoin Home, more than 200 million funds were liquidated in the past hour, and nearly 90,000 people had 3.7 billion liquidated in the past 24 hours!

Among them, the largest liquidation order occurred in MXC-BTC, worth 4.48 million US dollars (about 29.1527 million RMB).

Various institutions and enterprises are rushing to buy

In recent years, various institutional investors and companies have purchased Bitcoin, including Tesla, Square, Microstrategy, etc. Recently, Meitu has become the latest company to join this camp. Meitu announced on March 7 that the company spent $40 million to purchase 15,000 units of Ethereum and 379.1214267 units of Bitcoin on March 5. In addition, Ebang International, Codechain New World (CCNC for short), Cobo, etc. have entered the market one after another.

Regarding retail investors' fear of missing out, Arslan analyzed that it is now more convenient to buy cryptocurrencies than before, and there are many more retail investors with accounts on cryptocurrency exchanges than before. "With the promotion of these two factors, Bitcoin is full of momentum to soar, and the overall situation of the cryptocurrency market is also optimistic."

Many foreign institutions have also begun to enter the Bitcoin market. According to foreign media reports, Goldman Sachs has restarted its cryptocurrency trading desk and will provide Bitcoin futures and non-deliverable forward (NDF) trading services to customers starting this week. Goldman Sachs previously analyzed that in this round of gains, institutional investors have a very high demand for cryptocurrencies, which may provide support for Bitcoin's gains.

Edward Moya, senior market analyst at Oanda, said that institutions are still very interested in cryptocurrencies, and as more large bets continue to flow into the cryptocurrency market, sentiment towards Bitcoin is rising again.

In the face of the rebound of Bitcoin, many analysts also said that one of the important factors driving the recovery of the Bitcoin market is the pursuit of institutional investors, famous investors and enterprises. "When you look at the rise of Bitcoin in the past period of time, there are indeed two major factors driving it. One is the continuous entry of institutional participants." Arslan, head of PwC's global crypto business, said that many well-known Wall Street billionaires publicly support Bitcoin. Investors such as Paul Tudor Jones and Stanley Druckenmiller have invested in Bitcoin and praised Bitcoin's potential as a hedge against inflation.

Will Bitcoin replace gold?

Bitcoin has been repeatedly compared with gold, which is also a safe-haven asset, in the market. Market opinion suggests that Bitcoin will replace gold and become the new king of global safe-haven assets.

According to a report released by Bloomberg this week, the dominant cryptocurrency Bitcoin is rapidly rising to become the new digital gold. In recent years, Bitcoin has gained increasing recognition as investors flock to digital assets. The report stated that "Bitcoin will transform from a speculative risk asset to a global digital store of value in 2021."

As of last month, the price of Bitcoin was $45,000, and as of press time, Bitcoin has exceeded $55,000. The price of gold was about $1,859 per ounce at the beginning of last month, and has now fallen to $1,711 per ounce.

Some Bitcoin enthusiasts, such as MicroStrategy CEO Michael Saylor, even suggested that investors sell gold and buy Bitcoin instead, arguing that "gold is dead money" and that "other people will sell their gold."

While precious metals will always have a place in “jewelry and coin collecting,” Bitcoin appears to be “pushing out the old store of value,” replacing the metal as an inflation hedge.

However, some institutions disagree and warn investors to keep their risk. UBS CIO believes that such a price is not reasonable. "Bitcoin's supply mechanism is extremely inelastic, which exacerbates price volatility. Bitcoin's actual usage scenarios are also very limited, and the extraordinary price fluctuations indicate that many buyers are seeking speculative gains." There is a bubble in Bitcoin trading, and investor sentiment may be affected by factors such as tightening regulations, leading to volatility risks and remaining cautious about speculative behavior in cryptocurrencies. In addition, traditional safe-haven and hedging tools such as gold can also provide protection when cryptocurrencies go down.

Some media reported that some national regulators are cautious about Bitcoin. A US Federal Reserve official said earlier that this round of Bitcoin "bull market" cannot last long. Boston Fed President Eric Rosengren also predicted that as central banks gradually launch digital currencies, people will have no reason to buy Bitcoin.