Bitcoin Breaks $1 Trillion Market Cap, ETFs Boost Robinhood's Trading Activity
Summary:
Bitcoin has surpassed the $1 trillion market cap as its price crossed $50,000, rebounding from a previous dip caused by higher-than-expected U.S. inflation figures. Meanwhile, Robinhood's CFO reported that the introduction of Bitcoin ETFs did not hamper trading activity on the platform, but rather added value. Despite fluctuations triggered by inflation reports, Bitcoin remains in positive territory, indicating a 14% increase over the past week.
Surpassing $50,000, Bitcoin smashed the $1 trillion market cap barrier, bouncing back after a slide triggered by higher-than-anticipated U.S. inflation data. Meanwhile, newly launched Bitcoin ETFs did not impact Robinhood's trade activity, according to the company's CFO during their Q4 earnings discussion. Bitcoin, also known as BTC, skyrocketed past $51,000 and broke the $1 trillion market cap barrier. The last time Bitcoin hit this mark was in the bullish surge of November 2021 when it achieved a record price of $69,000. The forthcoming Bitcoin halving is anticipated to significantly boost the cryptocurrency's market price. In Grayscale's analysis, the introduction of Bitcoin ETFs could dramatically alter Bitcoin's supply-demand dynamics, offsetting selling pressure from the halving. Robinhood's CFO claimed that the platform's traders have not shifted to Bitcoin ETFs, indicating most of the crypto trading activities are still geared towards Bitcoin. He stated the introduction of ETFs did not cannibalize trading but provided additional value. The company's earnings report showed an 89% surge in crypto trading volumes compared to Q3, driven by customer growth and overall trading volumes. The company's total crypto assets under management surged by 87.5% year over year to hit $15 billion at the end of 2023. In reaction to stronger than anticipated U.S. inflation data, which diminished the hope of a March rate cut, Bitcoin and the entire crypto market took a plunge on February 13. Bitcoin price dipped almost 4% to $48,435 but later bounced back above $49,000. U.S. consumer price index (CPI), a key inflation gauge, demonstrated a drop to 3.1% in January, as revealed by the Bureau of Labor Statistics. This drop, however, was still above the predicted decline to 2.9%. Consequently, investors dismissed the likelihood of the Federal Reserve slashing interest rates in their March FOMC meeting, contrary to popular expectations. Despite this downturn, Bitcoin has still made a 14% gain over the previous week, touching $50,000 on February 12 for the first time in over two years. This piece does not provide investment guidance or recommendations. It's important to remember that every investment and trading decision carries potential risks, and independent research must be conducted by readers before acting upon any decision.
Published At
2/14/2024 4:00:28 PM
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