Key Points
- Bitcoin’s market capitalization hits a new record of $1.35 trillion on March 5, briefly surpassing silver.
- Bitcoin’s bullish price action is attributed to the approval of spot Bitcoin exchange-traded funds (ETFs) in the US.
On March 5, Bitcoin’s market capitalization hit a new record high, reaching $1.35 trillion. This was accompanied by a 3.35% rise in the Bitcoin price within 24 hours, trading at $67,322.
The world’s inaugural cryptocurrency has seen an over 17% increase on the weekly chart. Following this new high, Bitcoin momentarily became the eighth-largest global asset, as its market capitalization briefly surpassed silver’s $1.347 trillion, the world’s second-largest precious metal.
Record-Breaking Performance
This surge happened a day after Bitcoin recorded its highest daily close at $68,245 on March 4, exceeding its prior record close of $67,525 on November 8, 2021. This bolsters predictions that the Bitcoin price could reach $100,000 before 2024 ends.
The recent approval of spot Bitcoin ETFs in the United States is a significant factor behind Bitcoin’s bullish price action. February saw an impressive 44% surge in Bitcoin, showing 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.
Investor Confidence and Future Plans
According to analysts, open interest on centralized exchanges for Bitcoin futures saw record highs, reflecting strong investor confidence in a sustained rally. The recent spike in open interest has surpassed the levels seen in November 2021, when Bitcoin hit its all-time high of nearly $69,000.
This new all-time high comes a day after MicroStrategy, the largest corporate Bitcoin holder, announced plans to raise $600 million to buy more Bitcoin. The funds will be issued in the form of senior convertible notes.
