Bitcoin’s market capitalization soared to a historic high of $1.35 trillion on March 5th.
Within the 24-hour period leading up to 12:55 pm UTC, the price of Bitcoin increased by 3.35%, reaching a trading value of $67,322. According to data from CoinMarketCap, the world’s first cryptocurrency has seen a weekly rise of over 17%.
Following this new milestone, Bitcoin briefly surpassed the market capitalization of silver, the second-largest precious metal in the world, making it the eighth-largest asset globally, as reported by CompaniesMarketCap.
This surge comes after Bitcoin achieved its highest daily closing price of $68,245 on March 4th, surpassing its previous record of $67,525 on November 8th, 2021. Analysts now believe that Bitcoin could reach $100,000 by the end of 2024.
Bitfinex Analysts, in a research report shared with Cointelegraph, attributed the bullish price action of Bitcoin to the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. They stated, “February witnessed an impressive 44% surge in BTC, reflecting a notable positive momentum since December 2020. The $7.5 billion influx into Bitcoin ETFs not only drives market growth but also signals a positive outlook and potential for continued capital inflow.”
Furthermore, Bitfinex Analysts noted that open interest in Bitcoin futures on centralized exchanges has reached record highs, indicating strong investor confidence in a sustained rally. They stated, “The recent spike in open interest has surpassed the levels seen in November 2021, when BTC hit its all-time high of nearly $69,000. On Friday, March 1, the total open interest for Bitcoin futures contracts soared above $26 billion, surpassing the previous record, set in the last quarter of 2021, of $24 billion.”
The new all-time high for Bitcoin comes shortly after MicroStrategy, the largest corporate holder of Bitcoin, announced plans to raise $600 million to purchase more BTC. According to Michael Saylor, the executive chairman of MicroStrategy, the funds will be issued in the form of senior convertible notes.
As the Bitcoin halving approaches, investors are considering whether this is the right time to invest in BTC.
Bitcoin market cap temporarily exceeds value of silver, hitting a record high