Source: Securities Times
On May 16, the digital currency market went wild. As of press time, Bitcoin rose 6.31% to $65,804.4.
The digital currency market is in full swing, with many varieties rising more than 20% in a single day.
According to data from the cryptocurrency testing website Coinglass, a total of 58,751 people have been liquidated in the last 24 hours, with a total liquidation amount of US$159 million. The largest single liquidation order occurred in OKX - BTC-USDT-SWAP, worth US$2,146 million, which is equivalent to approximately RMB 15.26 million.
There are three main reasons for the sudden rise in the Bitcoin market: First, Hong Kong Bitcoin spot ETF continued speculation; second, weak US core CPI data last night boosted expectations of interest rate cuts; third, the Chicago Mercantile Exchange Group is planning to launch Bitcoin trading.
Bitcoin spot ETFs are being hyped up
Although sales of virtual asset-related products are prohibited in mainland China, investors can still invest in Bitcoin through other markets. According to Hong Kong's “South China Morning Post”, mainland Chinese investors accounted for 50% of Hong Kong's Bitcoin Asia conference attendance.
In addition to Asia, Bitcoin spot ETFs in other regions around the world are also being hyped up.
According to US Securities Regulatory Commission (SEC) documents, Switzerland's largest bank UBS (UBS) holds 3,600 shares of BlackRock ETF (IBIT). Boston-based Bracebridge Capital reports that it holds $433 million worth of bitcoin through ETFs. The Bank of Montreal also disclosed Bitcoin spot ETF holdings in new US Securities Regulatory Commission documents.
Additionally, on May 16, it was reported that the Chicago Mercantile Exchange Group (CME Group) is planning to launch Bitcoin trading. CME has held discussions with traders who want to buy and sell Bitcoin on regulated markets. This plan has yet to be finalized.
A few days ago, rumors were circulating on the Internet that Musk had entered the market to buy large amounts of bitcoins, but the rumor was later refuted by the government. The Hong Kong Securities Regulatory Commission said it suspected this was a cover for “fraudulent activity related to virtual assets,” and warned that the organization used three websites and two Facebook pages to carry out cryptocurrency scams.
Influenced by macroeconomic factors
Recently, Bitcoin has fluctuated greatly, mainly due to macroeconomic factors. Judging from the recent trend of Bitcoin, there has basically been a rise and fall in the same direction as gold and silver.
On Wednesday evening, data released by the Bureau of Labor Statistics of the US Department of Labor showed that the CPI rose 3.4% year on year in April, in line with market expectations. The previous value was 3.5%. The US core CPI rose 3.6% year on year in April, in line with market expectations. The previous value was 3.8%.
The slowdown in US inflation in April strengthened the market's expectations that the Federal Reserve would cut interest rates as early as September. The US dollar index once hit a new low in nearly five weeks. Gold and silver futures have now risen sharply, and the Bitcoin market has risen sharply.
Edit/jadyen