Bitcoin (BTC), the leader of the cryptocurrency market, reached an all-time high in a development that delighted investors. Reaching a new record high of $125,449.77 in the previous trading hours, the leading cryptocurrency surged more than 20%, surpassing the psychological barrier of $100,000, which it broke in December of last year. Although prices had stabilized around $122,000 at the time of writing, this surge generated significant market excitement.
Market Confidence Benefits Bitcoin
According to experts, one of the key factors behind this record-breaking performance is the growing confidence in US markets and the strong interest in Bitcoin Exchange Traded Funds (ETFs), in particular. ETFs, which allow investors to profit from Bitcoin’s price movements without having to directly purchase and manage cryptocurrencies, have recently attracted significant investment. Because these funds must physically purchase Bitcoin in exchange for their investments, any new investment demand directly impacts the BTC price.
While these are happening on the demand side, a noticeable decrease is observed on the supply side. According to data from the cryptocurrency data analysis site CoinMarketCap, the amount of Bitcoin available for immediate purchase and sale on exchanges is gradually decreasing. It’s reported that large investors, particularly “big whales,” are withdrawing large amounts of their Bitcoin from exchanges and transferring them to long-term storage wallets. The withdrawal of 54,000 BTC (worth approximately $6.6 billion) from a major exchange just yesterday stands as a significant confirmation of this.
With this record-breaking surge, Bitcoin’s total market capitalization has reached $2.5 trillion. This value brings Bitcoin very close to the market capitalization of silver, one of the world’s most valuable assets.
Although gold, with a market capitalization exceeding $26 trillion, is still a long way off, this development demonstrates that Bitcoin is no longer a niche investment tool and has transitioned into a mainstream financial asset. So, what are your thoughts on Bitcoin’s new record? Do you follow the cryptocurrency market closely?
