Bitcoin Leads Surge in Crypto Market: Record Highs, Major Inflows, and Open Interest Growth
Summary:
The global crypto market experienced growth, with its capitalization rising by 5.8% to $2.51 trillion on March 4. Bitcoin's (BTC) market dominance also increased to 53.3%. Additionally, the value of Bitcoin reached a record high of $68,602. Other leading altcoins also saw an increase in their values. The upcoming supply halving and the approval of ETFs are key factors driving Bitcoin's price increase. The crypto market rally led to short position liquidations worth $346 million, thus adding $3 billion in open interest to the crypto market over the past 24 hours.
Today has seen a boost in the crypto market, with the rise of the global market capitalization by 5.8%, reaching $2.51 trillion as of March 4. Consequently, Bitcoin (BTC), the leading digital currency, now has a market dominance of 53.3% as its market capitalization achieves an unprecedented high. The valuation of Bitcoin (BTC) rose by 8.5% within the last 24 hours, marking a day's high of $68,602 on March 4. Other major altcoins such as Ether (ETH), Cardano (ADA), XRP (XRP), and Dogecoin (DOGE) also experienced high rallies.
The crypto market today is propelled by several key factors.
A new all-time high emerges as Bitcoin’s market capitalization swells.
The total market value of Bitcoin has achieved a fresh record against the dollar. Bitcoin surged to $68,602 on March 4, pushing its total market value to a staggering $1.33 trillion. Overall, Bitcoin's present value is determined by multiplying the circulating digital coins, 19,644,550 BTC at the time of this report, by its current spot price.
The relentless price ascent of Bitcoin is credited primarily to the anticipated supply halving, expected to slash miner rewards by half. Additionally, the approval of spot exchange-traded funds (ETFs) in the United States has further propelled Bitcoin’s growth.
Crypto inflows record the second-largest weekly inflow of $1.8 billion. A report by CoinShares’ Digital Asset Fund Flows Weekly indicates that Bitcoin accounted for “94% of the inflows” at $1.72 billion. These inflows were considerably driven by U.S.-based funds. In contrast, the incumbent Grayscale Bitcoin ETF, GBTC, has been demonstrating outflows.
As the price of Bitcoin increases, so does the inflow of institutional capital. CoinShares' data reveals that short investors have further invested an additional US$22m.
The crypto market rally, valued at $346 million, has resulted in multiple short position liquidations. Bitcoin and Ether tops the list of crypto liquidations, with $107.71 million and $41.92 million respectively. Despite these liquidations, "$3 billion in open interest has been added to the #crypto market over the last 24 hours,” reports trading analysis platform Coinalyze.
With the growing approval of spot ETFs and the looming Bitcoin supply halving, sentiment towards the market seems positively inclined. Increased inflows from institutional capital, anticipations for a spot Ether ETF, and the forthcoming Bitcoin halving indicate that the bull market is present.
Published At
3/5/2024 2:29:56 AM
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