Bitcoin and Ethereum prices have risen sharply and Bitcoin ETFs have also seen an increase in trading volume; Meme coins are also performing well and the market as a whole is booming.
•Bitcoin (BTC) rose to around USD 67,500 on March 4, approaching silver's market capitalization of around USD 1.4 trillion (around JPY 210 trillion, equivalent to USD 150).
•Ethereum (ETH) also surpassed $3,600 for the first time since January 2022, due to strong demand from institutional investors.
•The BlackRock Bitcoin ETF continues to perform well, with trading volume exceeding USD 2 billion before the close of trading.
Bitcoin continued to rise on a fourth day, passing $67,000, approaching its all-time high of around $69,000 and silver's market cap of around $1.4 trillion.
Bitcoin remained flat for about a week below $64,000, but neared $67,500 during US trading hours on May 4, up 7% in 24 hours The CoinDesk 20 Index (CD20), which tracks overall market movements, rose 5%.
In its rise since the start of the year, bitcoin has become one of the largest assets in the world, with a market capitalization of more than USD 1.3 trillion currently; according to CompaniesMarketCap data, bitcoin has surpassed the market capitalization of Facebook's parent company, Meta Platforms, and is now approaching silver's market capitalization of around USD 1.4 trillion.
Ethereum also crossed the $3,600 mark on April 4 for the first time since 2022, but was up just 3.5% on the day, trailing Bitcoin and CD20.
Meme coins are on the rise, with Shiba Inu-themed crypto assets Doji Coin (DOGE) and Shiba Inu Coin (SHIB) up 15% and 54% respectively in 24 hours.
The Bitcoin ETF craze continues
With the rise of bitcoin, bitcoin ETFs also continue to perform well.According to Barchart data, trading volume in the BlackRock iShares Bitcoin Trust (IBIT) exceeded USD 2.1 billion before the close of trading, the third highest daily volume after the 28th and 29th of last week.
IBIT's volume that day was also the seventh highest of any ETF traded in the US, not just Bitcoin ETFs; it is the fifth largest of all ETFs in terms of assets under management (AUM), but its daily trading volume exceeds the daily trading volume of the largest ETF in the US, the SPDR Gold Shares (GLD) gold ETF.
Highest record?
Markus Thielen, founder of 10xResearch, in a market report on April 4, predicted bitcoin's price movement would be "phenomenal" this week, with widespread demand outside the US and continued strong inflows into ETFs, which would see bitcoin reach new highs all time this week.
A 4-day market intelligence report from analytics firm Swissblock highlights strong momentum in bitcoin and new buyers entering the market, with the report stating that the current rally is driven by demand for bitcoin and ethereum from large investors amid weakening US regional banks, as well as increased demand a meme coin driven by the sentiment FOMO (Fear of Missing Out).
Swissblock also noted that in the short term, $70,000 is a 'reasonable target' for bitcoin, beating the all-time high recorded in November 2021.
