BTC breaks through $50,000, crypto market inflows reach $395 million last week

At 16:09 on March 3, according to relevant data, BTC rose in the short term, breaking through the $50,000 mark, with a daily increase of 2.72%. According to the weekly cryptocurrency fund inflow report released by CoinShares, a total of $395 million flowed into cryptocurrency products last week, and $288 million flowed into Bitcoin.

Meanwhile, data from TheBlock shows that Bitcoin miners’ total revenue in February exceeded $1.36 billion, breaking the previous record set in December 2017. Total mining revenue in February increased by 21.4% from $1.12 billion in January, and only a small portion of the total revenue in February ($186.4 million, or 13.7%) came from transaction fees.

The crypto market continues to be hot. According to data from CaseBitcoin, an on-chain analysis company, Bitcoin's 10-year compound annual growth rate (CAGR) has reached 196.72%. This means that in the past decade, if the compound interest is calculated, Bitcoin investors have almost tripled their investment every year.

Data shows that there are currently about 4 million bitcoins in free circulation, and this number has continued to decrease over the past year. Glassnode said that as more and more institutional investors accept Bitcoin as an investment, the decreasing supply of Bitcoin available for sale may cause a surge in prices.

As the market rebounded, fundamental news from institutional investors became active again. MicroStrategy recently purchased another $15 million worth of Bitcoin. Jurrien Timmer, head of global macro at Fidelity Investments, also expressed the view that in the current economic context, investors may want to start considering adding Bitcoin to their portfolios to better hedge against inflation.

There is no doubt that the popularity of Bitcoin has gradually spread. Past demographic studies have shown that cryptocurrency investors are mostly young and male, but recently released reports show that a new wave of "crypto moms" in South Korea are increasingly interested in Bitcoin (BTC) and altcoins. Data released by WiseApp shows that people aged 40-49 are now the main group of crypto investors in South Korea, and female investors have also begun to buy cryptocurrencies.

Veteran investor Jim Rogers (former business partner of George Soros, chairman of Soros Fund Management, and co-founder of Quantum Fund and Soros Fund Management) also said in a previous interview that he regretted not buying Bitcoin many years ago.

It is worth mentioning that Citi analysts recently pointed out that there are many risks and obstacles on the road to Bitcoin, but weighing these potential obstacles against opportunities, the conclusion is that Bitcoin is at a critical point. Bitcoin may either become the preferred currency in international trade in the future, or face a "speculative implosion." Bitcoin's recent performance has been accompanied by the increasing enthusiasm of institutional investors in recent years, a change from the participation of mostly retail investors in the past decade. But changes in the macroeconomic environment may also make the demand for Bitcoin less urgent. At the same time, New York State Attorney General Letitia James warned investors on Monday that "investing in virtual currencies should be particularly cautious." (Golden Finance)