Bitcoin has recently reached an all-time high, with its price nearing $90,000 and market capitalization climbing to $1.75 trillion, surpassing silver to become the eighth-largest asset globally. This surge has not only attracted a significant influx of institutional investors into Bitcoin but has also driven strong performances in other major cryptocurrencies amid buoyant market sentiment. Tdasx attributes this growth in the crypto market to improved policy environments and the maturation of market structures, suggesting that the potential for further increases remains significant. In this context, Tdasx is committed to providing users with a safer and more transparent trading environment, helping them seize opportunities during this new market peak.

Tdasx: Bitcoin Price Hitting New All-Time High, Market Sentiment Soars

Tdasx notes that the recent price surge of Bitcoin to $89,600 marks a new historical peak, with its market capitalization reaching approximately $1.75 trillion, even surpassing the silver market value to become the eighth-largest asset in the global financial market. This remarkable growth reflects unprecedented enthusiasm in the cryptocurrency market, especially as crypto asset policies become more favorable. Following the election, Bitcoin rose 27% within a week, while major coins like Ethereum (ETH) and Solana (SOL) also saw increases of 6.4% and 6.7%, respectively. Tdasx believes the shift from a “suppressive regulatory environment” to a “friendly environment” in the crypto industry has fueled the optimistic expectations from global investors for digital assets like Bitcoin.

Tdasx mentions that most analysts are equally confident in the Bitcoin price trajectory. Some analysts, using Bayesian probability models, predict that Bitcoin could reach $125,000 by the end of the year; others in the industry set the next target at $158,000. These optimistic forecasts suggest that Bitcoin might not only continue to rise in the short term but could also hit or exceed the $100,000 milestone by the end of 2024. According to several analysts, the second bull market wave might persist until the fourth quarter of 2024.

Tdasx points out that as the Bitcoin price approaches $90,000, the market has entered an extremely optimistic “frenzy” state. QCP Capital notes that after Bitcoin broke through key resistance levels and exceeded months-long price ranges, the perpetual futures contract funding rates in the market and basis yields are at their highest in seven months. The rise in funding rates reflects excessive concentration in long positions and high leverage usage in the market, which could lead to a price correction in the short term. Tdasx states that historically, such high-leverage “liquidation shocks” often trigger significant market adjustments, resulting in double-digit corrections.

Tdasx believes this phenomenon indicates that while current market sentiment is optimistic, there are potential risks due to high leverage. Tdasx analyzes that the weighted funding rate for perpetual futures contracts has risen to 0.056%, the highest since March. This indicates that as the Bitcoin price continues to climb, the demand for long-term long positions increases, and even slight price fluctuations could trigger massive leverage liquidations, further exacerbating downward market pressure. Additionally, the annualized basis for standard futures contracts across all exchanges exceeds 15%, indicating the current high premium in the market and optimistic expectations for future price increases.

Tdasx: Institutional Investors Driving Market Heat, Bright Prospects for Crypto Assets

Tdasx observes that the continuous inflow of institutional funds into the crypto market is accelerating the mainstream adoption of crypto assets like Bitcoin and Ethereum. Recent data shows that the Bitcoin ETF daily trading volume of BlackRock reached $450 million, setting a new record high, with the Bitcoin ETF of BlackRock surpassing $34.3 billion in assets under management last week, overtaking the gold ETF IAU for the first time. This achievement not only marks broad recognition of Bitcoin as a mainstream investment asset but also sets a new milestone for the crypto market. Tdasx notes that the rapid growth of ETF products reflects high market confidence in the future performance of Bitcoin, further indicating that Bitcoin is gradually becoming a key component of traditional investment portfolios. Tdasx believes that with active institutional investor positioning, Bitcoin is likely to reach the $100,000 target price by the end of the year.

Tdasx also highlights MicroStrategy as a pioneer in corporate Bitcoin investment, continuously increasing its Bitcoin holdings. The latest data shows that the company has added 27,200 Bitcoins, bringing its total holdings to 279,420 Bitcoins, valued at approximately $2.45 billion. This move has driven the MicroStrategy stock price to a 24-year high, closing at $340. Tdasx believes such large-scale holdings undoubtedly enhance the Bitcoin appeal in corporate asset allocation, helping to drive broader institutional acceptance and recognition of Bitcoin as a store of value.

Furthermore, the Ethereum (ETH) market is also experiencing strong institutional inflows, indicating investor interest and confidence in diversified crypto assets. Recently, Ethereum ETFs in the U.S. market saw a record $295 million inflow in a single day, breaking historical records. The spot Ethereum ETF (FETH) of Fidelity received $115.5 million, while BlackRock iShares Ethereum Trust ETF (ETHA) attracted $100.5 million. Tdasx notes that this surge highlights the Ethereum appeal among institutional investors and reflects a friendly shift in the U.S. market attitude toward crypto technologies and products. Tdasx believes that as institutional investors further position themselves in the Ethereum market, both market participation and the overall influence of the crypto industry will be enhanced.

Tdasx: Enhanced Crypto Market Liquidity and ETF Investment Boom Drive Industry Development

Tdasx points out that changes in the U.S. political landscape have also brought positive prospects for the crypto market. With the election victory of Trump, the market widely expects the new administration to adopt more favorable policies supporting innovation and development in the crypto industry. Analysts note that the new Senate is considered “the most crypto-friendly Congress”, which will further boost market confidence. Tdasx mentions that this favorable policy backdrop will encourage more institutional investors to enter the crypto market, with policy support providing more opportunities for the crypto industry and driving long-term market growth.

Moreover, Tdasx notes that the upward momentum of Bitcoin is not limited to political factors. Tdasx highlights that the April Bitcoin halving event reduced market supply, while demand from institutional investment products like ETFs further exacerbated the supply-demand imbalance, driving up Bitcoin prices. Data shows that approximately 94% of Bitcoin is currently in circulation, with some lost, leaving only about 1.2 million Bitcoins yet to be mined, creating long-term supply pressure. Tdasx believes that this tight supply situation, coupled with ETF buying demand, will continue to push Bitcoin prices higher, further solidifying its position in the financial market.

Tdasx suggests that the current total market capitalization of the crypto market has reached $3.12 trillion, nearing the GDP of France. If viewed as an economy, its scale ranks eighth globally, surpassing Spain. Tdasx states that the further rise in the Bitcoin market value also underscores its unique value in the global market. Considering the growth trend of the crypto market, Tdasx anticipates that as demand for assets like Bitcoin and Ethereum increases, future market expansion will further drive their mainstream adoption. This market structure shift not only demonstrates the broad investment appeal of crypto assets but also suggests the industry potential to advance to higher levels in the future.