March 13, 2024 at 14:23 GMTModified date: March 13, 2024 at 14:23 GMT
March 13, 2024 at 14:23 GMT

Bitcoin shatters records, climbing to a new high of $73K

This surge has elevated Bitcoin’s market capitalisation beyond $1.4 trillion, surpassing Silver to become the eighth-largest asset globally.

Bitcoin shatters records, climbing to a new high of $73K

Bitcoin ($BTC) has been on a remarkable run, setting new all-time highs for two consecutive days. The digital currency soared to these record levels on Tuesday, reaching the $73,000 territory after adding more than 1% to its value.

This surge has significantly increased Bitcoin’s market capitalisation, pushing it past the $1.4 trillion mark and making it the eighth-largest asset globally, now ahead of Silver.

The momentum is partly driven by the anticipation of the upcoming Bitcoin halving event, which is about 38 days away.

At the time of press, its price stood strong at $73,462, marking an increase of almost 3% in the last 24 hours.

Technical indicators also emanated strong bullish momentum for the top coin. Both the Awesome Oscillator (AO) and the Moving Average Convergence/Divergence (MACD) were seen with tall green histograms above their respective half-lines.

However, price volatility could be expected as the Bollinger Bands were seen wide away from each other.

Wealth distribution dynamics

The surge in Bitcoin’s value has led to the creation of approximately 1,500 new “millionaire wallets” each day, a term referring to digital wallets holding enough Bitcoin to value the owner as a millionaire. 

This data, provided by Kaiko Research, highlighted a significant wealth shift within the cryptocurrency ecosystem. However, despite the increase, this rate of millionaire wallet creation is not as rapid as during the 2021 bull market. 

Back then, over 4,000 wallets were reaching this status daily. The peak of this year was on 1 March, with 1,691 new millionaire wallets recorded.

The slower pace of millionaire wallet creation is attributed to several factors. There’s a more gradual inflow of fresh capital into the market, and large investors, often referred to as “whales”, are taking advantage of the high prices to realise profits. 

Additionally, there’s a noticeable shift towards using custodial services rather than personal wallets for holding large amounts of Bitcoin. The rise in Bitcoin’s value, which has seen over a 70% increase this year, is also buoyed by the excitement surrounding the launch of US-based spot Bitcoin exchange-traded funds (ETFs) in January.

The cryptocurrency’s growing mainstream appeal could also be underscored by endorsements from high-profile individuals like Canadian superstar Drake. He had recently shared a clip from Bitcoin bull Michael Saylor with his 146 million Instagram followers. 

Moreover, significant investments by entities such as MicroStrategy, which added 12,000 $BTC to its holdings, and the observed decrease in Bitcoin reserves on central exchanges, further highlight the increasing mainstream and institutional acceptance of Bitcoin.

Spotlight on Bitcoin ETFs

The landscape of Bitcoin investment has seen a significant shift with the introduction of spot Bitcoin ETFs in the United States. These ETFs have reached a new milestone, attracting over $1 billion in net inflows for the first time on 12 March. 

The total inflows into these ETFs have surged past $11.1 billion in just the last 13 days, with the iShares Bitcoin ETF by BlackRock leading with an inflow of $849 million. 

Other ETFs like ARK 21Shares Bitcoin ETF, VanEck Bitcoin Trust ETF, and Fidelity Advantage Bitcoin ETF have also seen substantial contributions.

This influx of capital into Bitcoin ETFs, coupled with the ongoing bull run, has propelled the daily inflows of capital stored by the Bitcoin network to hit $2 billion per day. 

Despite the overall positive trend, the Grayscale Bitcoin Trust (GBTC) has continued to experience a decline, shedding $11.1 billion over the last 13 days. It also saw its market share drop below 50% for the first time since the trading of spot Bitcoin ETFs began in the US. 

This shift reflects changing investor preferences and the dynamic nature of the cryptocurrency investment landscape.