Bitcoin Hit All-Time High Record. The price of Bitcoin, the world’s leading digital currency, has recently hit an all-time high, marking a significant milestone in its value.
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Foreign media reports indicate that Bitcoin’s price has surged by $10,000 since May of the previous year.
Over the course of these 18 months, the price of a single Bitcoin has soared to its highest point, estimated to be around $35,000.
This remarkable price increase is attributed to growing institutional interest in Bitcoin, with its total market capitalization estimated to be well over $700 billion. Bitcoin Hit All-Time High Record is considered a piece of great news for Bitcoin enthusiasts.
Cryptocurrency analysts believe that Bitcoin has now reached a point of no return, and its continued market growth appears to be inevitable.
Bitcoin’s soaring value demonstrates the increasing mainstream acceptance and interest in the world of cryptocurrencies, making it a key player in the global financial landscape.
Is Bitcoin’s scarcity a concern?
Unlike fiat money, Bitcoin has a finite supply, with approximately 89% reached by April 2021. It’s predicted to be fully mined by 2040 due to increasing mining complexity and energy consumption.
Bitcoin’s price: a potential bubble?
Forecasting cryptocurrency values is challenging, mainly because a small group of ‘whales’ controls a significant portion of the supply. These whales, constituting 2% of ownership accounts, possess about 92% of BTC. Additionally, most cryptocurrency users are retail clients, not institutional investors, making price predictions uncertain. A single large whale’s actions can significantly impact the market, adding to price volatility.
Bitcoin (BTC) is currently priced at $34,664, with futures open interest at the Chicago Mercantile Exchange (CME) reaching a record high of $3.65 billion on November 1. This metric considers the total value of active contracts for the upcoming months, where buyers (longs) and sellers (shorts) are continuously matched.
CME Bitcoin futures exhibit strong bullish momentum, evident from the increased number of active large holders, reaching a record 122 during the week of October 31. This suggests a growing institutional interest in Bitcoin. Notably, the premium for CME Bitcoin futures has reached its highest level in over two years.
While neutral markets typically maintain an annualized premium within the 5% to 10% range, the recent 15% premium for CME Bitcoin futures indicates a robust demand for long positions. However, it also raises concerns, as some may be banking on the approval of a spot Bitcoin exchange-traded futures (ETF).
Contrary to the optimism seen in CME futures, Bitcoin options markets show an increased interest in protective put options. The put-to-call open interest ratio at the Deribit exchange has reached its highest levels in over six months, signaling a more cautious approach to BTC.
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