Bitcoin Breaks $90K Barrier, Triggers Massive Liquidations
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The rise of Bitcoin and cryptocurrency in the national strategic landscape has undoubtedly marked a significant turning point in the financial worldThis movement attracts not only avid investors but also institutional capital seeking opportunities in a market traditionally viewed with skepticismHowever, with the remarkable price fluctuations that Bitcoin has recently experienced, the risk of liquidation has escalated, raising concerns among newcomers to the crypto community.
“The bull market is on, and everyone is investing with 120% enthusiasm,” said MsLan, who works in Hong Kong’s virtual asset sector“If there's one regret, it's that we’ve been so busy that we missed out on getting rich quickly.”According to data from the top U.S
cryptocurrency exchange Coinbase, Bitcoin began its upward trend again on November 5, skyrocketing by over 10% on November 11. By November 12, it reached historic heights, surpassing $90,000. Since November 5, Bitcoin has accumulated a staggering increase of 28.2%, rising from $42,288.58 at the start of the year to $87,670.56 by November 13, representing a growth rate of 107.31%. Ethereum followed closely with a 31.2% rise since November 5, while Dogecoin, backed by Elon Musk, saw an explosive 131.25% surge in priceThe trading volume for Bitcoin ETFs also soared, with major exposure, as $1.606 billion flowed into the top ten U.SBitcoin spot ETFs from November 4 to 8.
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Regarding ETFs, by the end of the trading day, Huaxia Bitcoin gained 10%, with both harvest Bitcoin and Bosera Bitcoin ETF prices increasing by over 9%, and similar trends were observed for Ethereum ETFs.
Historic Highs for Bitcoin
Data from Coinbase indicated that Bitcoin once again reached unprecedented heights on November 12, climbing past the $90,000 mark and accumulating gains of 28.2% since November 5.
Currently, international institutions project Bitcoin prices rising to $100,000 and even as high as $125,000, with Standard Chartered's Global Head of Digital Assets Research, Geoff Kendrick, suggesting that Bitcoin could touch $200,000 by the end of 2025. He anticipates favorable policies could help lift the total cryptocurrency market valuation from $2.7 trillion to approximately $10 trillion by the end of 2026.
Will Bitcoin continue on this upward trajectory? Jeffrey Ding, chief analyst at HashKey Group, believes there’s still room for growth
“If Bitcoin is recognized as a U.Sreserve asset and this favorable condition is enacted, the existing crypto assets will remain within a stable circle and not flood the market, reducing negative market perceptions significantlyThis development could open new avenues for growth in the market.”
“As an industry participant, I have clearly observed a shift in attitude around me,” Owen Xiaoqi noted
“For a considerable time, Bitcoin was primarily viewed as a fraudulent scheme, partly due to the limited channels through which many accessed information about crypto assetsHowever, the senior decision-makers in many traditional financial institutions share similar backgrounds and age, and their recognition of the potential underlying crypto assets can inspire older decision-makers to reassess these considerations.”
On that day, Coinbase data showcased Bitcoin's considerable volatility, peaking at $90,045.35, yet plunging to as low as $85,131.64. The tumultuous price changes led to an increase in liquidation events; Coinglass reported over 250,000 liquidated positions, with total liquidation of $838 million, including a notable single position value of $11.874 million on Binance.
Industry insiders urge caution; Bitcoin prices are influenced by an array of factors, including market cycles and structural conditions
Considering the current uncertainties in the global economy, investors are advised to remain grounded, carefully assess market conditions, and evaluate their risk tolerance to avoid reckless behaviors.
There are also analyses suggesting Bitcoin faces geopolitical risks from the Middle East and Eastern Europe as well as escalating U.Sdebt, potential disruptors to current trends.
Is Investing via Bitcoin ETFs Viable?As Bitcoin’s impact on the global financial landscape increases, Bitcoin ETFs have emerged as a focal point for that investment attentionExperts contend that Bitcoin ETFs facilitate investment via traditional securities accounts, negating the need to directly purchase and secure Bitcoin, thus lowering barriers to entry, particularly for those unfamiliar with cryptocurrencies.
It’s noteworthy that as early as April 30 of this year, the first batch of Bitcoin and Ethereum spot ETFs was launched by subsidiaries of fund houses including Huaxia, Bosera, and Harvest in Hong Kong
Additionally, Southern Funds introduced Bitcoin futures ETFs in December 2022 and the first inverse Bitcoin futures ETF launched on July 23, 2024.
In February 2023, the Hong Kong government allocated HKD 50 million to the Cyberport for Web3.0 sector developmentA dedicated working group for the sustainable and responsible growth of Web3.0 was established in July 2023 to provide recommendations to the governmentBy March 2024, the government announced the introduction of a stablecoin "sandbox." In July, the Hong Kong Monetary Authority inaugurated the first three participants for the sandbox: JD.com, Circle, and Standard CharteredOn November 15, the Hong Kong Stock Exchange launched a series of virtual asset indices.
Discussing the launch of spot EFTs for virtual assets, Owen Xiaoqi remarked, “The introduction of these ETFs in Hong Kong holds immense significance for the ETF market, symbolizing the traditional finance sector’s full acceptance of virtual assets, which is likely to attract more institutional investors into the market.”
Xiaoqi continued, “The three ETFs already launched are managed by subsidiaries of Chinese funds, and we anticipate more both Chinese and foreign funds entering the ETF market in the near future
Beyond just ETFs, the market is poised to see more financial institutions apply for license upgrades, facilitating higher proportions of virtual assets in their portfoliosThese developments should enhance liquidity for Bitcoin spot ETFs in Hong Kong and further propagate the growth of the market.”
Presently, attention is directed towards whether virtual asset ETFs will be allowed in the Hong Kong Stock Connect program, with some industry insiders discussing the potential inclusion of virtual asset ETFs in interconnecting ETF initiatives at industry conferences
Perhaps, in the near future, mainland investors may gain the capacity to invest in virtual asset ETFs through the Stock Connect scheme.
As the virtual asset market evolves, regulatory frameworks for these assets emerge as challenges for various nations and regions worldwideHowever, differing national circumstances and regulatory implementations lead to varying policies on virtual assets.Currently, it is established in mainland China that virtual currencies carry no legal standing equivalent to legal tender, and activities associated with virtual currencies are deemed illegal financial operationsSince 2021, it has been clarified that foreign virtual currency exchanges offering services to residents in mainland China are classified as illegal financial services, restricting financial and non-bank payment institutions from supporting such operations.
In contrast, the U.S
and EU employ a hybrid regulatory model, primarily focusing on securities-like digital assets along with crypto-assets; while Hong Kong and Singapore operate under a sandbox regulation model overseen by local financial authoritiesNotably, global financial regulators advocate the principle of “same activities, same risks, same regulations” to maintain fair competition among enterprises.
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