The price of Bitcoin soared to a record high on Tuesday (May 20th), driving a collective rebound in the cryptocurrency market and global risky assets, with market sentiment significantly recovering from the slump in April.
According to Coinbase data, the price of Bitcoin once broke through the $74,000 mark per coin, rising by more than 27% compared with the phase low point in mid-April (about $58,000). This rally resonated with risky assets such as US technology stocks and emerging market stocks. The S&P 500 index rose by 12% cumulatively during the same period, and the Nasdaq 100 Index increased by 15%.
Analysis points out that this rebound is mainly driven by two major factors: First, the Federal Reserve has sent a signal to slow down the pace of interest rate hikes, which has improved market liquidity expectations; Second, the US inflation data has declined for two consecutive months, easing market concerns over an economic recession. The cryptocurrency sector has benefited from the submission of Bitcoin ETF applications by traditional asset management giants such as BlackRock, enhancing expectations for institutional funds to enter the market.
However, industry insiders caution that Bitcoin has experienced significant historical volatility, with three pullbacks exceeding 30% in 2024. Investors need to be vigilant about potential risks such as fluctuations in macroeconomic data and changes in regulatory policies.
As of the time of publication, Bitcoin was trading at $73,850 per coin, with a 24-hour trading volume exceeding $60 billion, and its market capitalization accounted for 48% of the total market capitalization of cryptocurrencies. Ether and other major currencies rose simultaneously, with a year-on-year increase of 22%.
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