“Bitcoin Soars to $52K, Market Cap Reaches $1 Trillion as CME Open Interest Surges to January Peak”

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Bitcoin at $52K, Market Cap Reaches $1 Trillion
Is Bitcoin ETF and CME Trading Growth the Key?
Bitcoin at $52K, Market Cap Reaches $1 Trillion
According to CoinMarketCap, the price of Bitcoin has reached $52K, a level not seen in two years, with a high of $52.5K. As of the deadline, it was at $52,132, with a 24-hour increase of approximately 5.78%, and a market cap of $1.023 trillion.
Ether reached a high of $2,828, and as of the deadline, it was at $2,797.
The total market capitalization of cryptocurrencies is approaching $2 trillion ($1.94 trillion), with Bitcoin’s market dominance at 52.5% and Ether at 17.2%. The total trading volume in the crypto market is $92.6 billion, with a 23.38% increase in the past 24 hours.
Is Bitcoin ETF and CME Trading Growth the Key?
Previous reports have shown a high net inflow into Bitcoin spot ETFs, with a continuous net inflow of over $400 million since February 8th.
(DLNews: Is Bitcoin at $52K the Start of an “Up Only” Trend? Wall Street Funds Continue to Flow into BTC ETF and Gold ETF)
DLNews quoted K33 Research analysts who pointed out that in addition to the impact of Bitcoin ETFs, the significant increase in trading activity on the Chicago Mercantile Exchange (CME) is also crucial. The open interest of Bitcoin futures contracts on CME increased by 24% last week, reaching a peak similar to before ETF approvals.
K33 Research stated:
Market participants have re-entered the market, focusing on the strong momentum brought by ETF flows. This can be seen from the increase in active market participants in the past week, with the open interest percentage on CME rising from 46% to 55%.
(Source: coinglass)
Meanwhile, Bitcoin is also facing sell pressure from bankrupt institutions like Genesis. However, Andrew Kang, co-founder of Mechanism, recently emphasized with data that these sell pressures are insignificant compared to the profound impact of Bitcoin spot ETFs on prices.
(Genesis has been granted court permission to sell over $1.3 billion worth of GBTC)
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Ether
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(Additional Reading)
History Repeating? ETH/BTC Falls Below Two-Year Low, Can it Replicate the 2020 Halving Trend?
News: Concerns Regarding ETFs Resolved by Regulators, but Ether ETF Status Remains Uncertain