The year of the Ox means prosperous business and wealth but is this the case for Crypto? TokenInsight investigates.
Happy Chinese New Year! This year is the year of the Ox (“牛年”, “牛” can be also translated as "Bull," which means The Year of Ox can be also interpreted as The Year of Bull) in the lunar calendar. For investors, the year of the Ox means prosperous business and wealth.
Of course, with the arrival of the Bull Year, good news will continue. After the investment of Bitcoin announcement from Tesla, the launch of Ethereum futures by CME, the US economic stimulus plan began to be implemented, and other factors, the digital asset market ushered in a surge around the Lunar New Year, which must have been a good fortune in the new year. This year is destined to be an extraordinary year for the cryptocurrency market.
Breaking $48,000: We All Knew That Was Not a Surprise
The recent trend of Bitcoin is no accident. The collective pull of retail investors in the past few weeks has proved that even the collective actions of individual investors have a relatively limited impact on prices.
However, the sharp rise of Bitcoin that broke through $48,000 on Feb. 9 was the result of a combination of factors.
On the one hand, Musk’s announcement of the purchase of $1.5 billion in Bitcoin by Tesla undoubtedly stimulated the enthusiasm of investors. Endorsements from top companies with a high market capitalization in the stock market have provided good support for the rise in the price of Bitcoin.
On the other hand, the higher mining income of Ethereum since January (the monthly income of Ethereum miners reached US$800 million, a record high ), allows miners to concentrate their computing power more on Ethereum, leading to a further increase in the supply and demand gap of Bitcoin. Besides, the economic stimulus plan from the US government began to be implemented gradually this week, and a large number of funds are expected to flow into Bitcoin.
On Feb. 8, Ethereum futures officially launched on the Chicago Board of Trade (CME), with a trading volume reaching $30 million on the first day. Although this trading volume is insignificant for the cryptocurrency market, its symbolic significance is huge: after Bitcoin, Ethereum has also been recognized by the traditional market, and its status as a compliant (alternative) asset has been formally established. Affected by this, the trading volume of Ethereum contracts has remained high recently, with total trading volume this week reaching $170.4B, up 12.85% from last week.
Exchanges Tokens Soar: the Rise of "Broker Stocks" in the Crypto Market?
On the eve of the Spring Festival, major exchange tokens' prices were one of the best gifts given to users who held those tokens. The price of BNB rose from around $40 at the beginning of the year to over $150 (at peak) this week. The current market cap of BNB has reached $19.37 billion, ranking seventh in the cryptocurrencies market.
Other mainstream exchange tokens have also experienced similar fluctuations. The recent year-end positive signals released by major exchanges at the end of the Lunar New Year are possible reasons for this situation. Similar to brokerage stocks, the performance of the exchanges will be the first to affect the performance of the exchanges tokens. Affected by the bull market that started in the fourth quarter of last year, the performance of top exchanges in terms of revenue and operations has so far been relatively better, which inspired the general outstanding performance of their tokens.
With the continuous development of the cryptocurrency market, exchange tokens similar to "blue chip stocks" and "brokerage stocks" in traditional markets are constantly being discovered. Whether it is exchanges tokens such as BNB and HT, or "blue chip tokens" such as DOT and GRT, they are all emerging value targets worthy of investors' attention and investment in the Year of the Bull. The market investment is more than just Ethereum and Bitcoin.
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