Bitcoin, the world’s most well-known cryptocurrency, is once again gaining in value, setting new records. Recently, it crossed the symbolic value of $44,000, placing it higher in market position than major corporations such as Meta or Berkshire Hathaway. This rise is particularly significant since Bitcoin had not reached such a high value since the April market crisis caused by the collapse of Terra. The article will examine the reasons for this phenomenon and its potential effects on the cryptocurrency market.
On Tuesday, the price of Bitcoin (BTC) surpassed the $44,000 barrier, reaching a peak of $44,011 per unit. This was an increase of over 24% in the last month and as much as 17% in the last two weeks. Bitcoin, being the leading cryptocurrency in terms of market capitalization, surprised investors and market analysts with its dynamics.
Over the last week, Bitcoin showed significant growth, strengthening its position by 14% relative to the US dollar. Such growth had not been observed since April 2022, before the sharp market decline in connection with the Terra crisis. Currently, the trading volume of BTC is $31.68 billion, twice as high as the day before. During the day, the Bitcoin price fluctuated from $41,453 to just over $44,000.
Bitcoin not only surpassed its April values but also exceeded the market capitalization of giants like Meta (formerly known as Facebook) and Berkshire Hathaway, becoming the ninth largest asset in terms of market value in the world. This list includes both companies and precious metals as well as investment funds.
The increase in Bitcoin’s value also had a direct impact on the cryptocurrency market, raising its market dominance to 51.3% with a total value of over $1.65 trillion in more than 10,000 assets. This phenomenon is particularly important as it illustrates the growing interest and trust of investors in the digital currency market.
Attention should also be paid to the increase in Bitcoin’s trading volume, which in recent days was the second highest in the world, second only to the stablecoin tether (USDT). In the last 24 hours, short positions worth $160 million were liquidated, of which approximately $91.34 million came from short positions on Bitcoin.
This phenomenon shows how dynamically the cryptocurrency market can change, becoming an increasingly significant element of the global financial system. Bitcoin’s value and its impact on the cryptocurrency market are increasingly being compared to traditional assets and companies, which may indicate the growing importance of this technology in the future.
Photo by Kanchanara on Unsplash
