Source: Golden Ten Data
According to predictions, Bitcoin's quadrennial halving event will occur in 10 days...
Bitcoin surpassed $72,000 for the first time since mid-March on Monday as the halving event approached.
According to Coinglass data, Bitcoin hit $72,650 on Monday, the highest level in nearly four weeks, and liquidated a short position of $55.72 million, not far from the annual high of $7,3777 that Bitcoin hit on March 14.
According to Coinglass data, traders who have shorted Bitcoin have lost nearly $55 million in the past 24 hours. In contrast, long position holders have already made profits of nearly $11 million.
According to the news, various institutions, including Harvest Fund's Hong Kong subsidiary and China Southern Fund's Hong Kong subsidiary, are applying for and deploying Bitcoin ETFs. Among them, the product that Harvest Fund applied to the Hong Kong Securities Regulatory Commission is a Bitcoin spot ETF. Furthermore, the Hong Kong subsidiary of Huaxia Fund recently reached a cooperation with the Hong Kong Bitcoin ETF custodian.
Industry insiders expect that the relevant Bitcoin ETF application may be completed in the second quarter of this year as soon as possible. Market participants judged that if a subsidiary in Hong Kong applies for a Bitcoin ETF product, it will further prove the maturity of its operation and market development potential. It is not ruled out that more leading public investors will use Hong Kong subsidiaries to set up the Bitcoin business.
Furthermore, according to the plan, Bitcoin will halve the rewards for miners to mine new blocks after 10 days, probably a few days around April 18, which may be a catalyst for Bitcoin's rise.
In the Bitcoin ecosystem, halving is a pre-programmed phenomenon that reduces the mining speed of new bitcoins by half. Historically, this event has been good news for long-term holders, according to Coingecko data.
However, soon after this peak, the price of Bitcoin usually undergoes a sharp downward adjustment, entering a period commonly known as the “crypto winter,” where its price falls by an average of more than 80%. Looking at the shorter time frame, September was a particularly bearish month for Bitcoin.
Despite lessons learned from the past, some people on Wall Street still predict “this time will be different” because today's situation is much different from the past: regulators have more clear regulations on Bitcoin, Wall Street has invested billions of dollars in spot Bitcoin ETFs, countries are investing in Bitcoin, etc.
According to Farside Investors' data, BlackRock's spot Bitcoin ETF's net capital inflow is close to $15 billion so far, which is a new milestone for this investment product, and also indicates that institutional interest in Bitcoin continues, which may be critical as the halving event approaches.
The rise in Bitcoin has also catalyzed the rise in the price of Meme coins. In the current cycle, these speculative assets usually rise and fall at the same time as Bitcoin. Some experts believe that the “copycat season” is the key theme of the 2024 bull market in the cryptocurrency market.
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