Bitcoin price skyrockets to 34000 dollars, market enthusiasm surges

In the past two weeks, the price of Bitcoin has soared from over $20,000 to $34,000, with market sentiment exceptionally high. The total market capitalization of Bitcoin has entered the global top ten, ranking ninth, just behind Alibaba.

In the past 24 hours, the price of Bitcoin has experienced a pullback. Mainstream cryptocurrency markets have fluctuated accordingly, with 38 out of the TOP 50 digital currencies declining, and SUSHI seeing the largest drop at 11.34%. Nevertheless, the overall speculative enthusiasm in the market remains unabated.

In this round of surge, nearly 88,000 Bitcoins have been withdrawn from exchanges in the past 30 days. Among them, a well-known exchange saw 84,558 Bitcoins withdrawn, while two other large exchanges withdrew 5,715 and 2,599 respectively. On January 3rd, a certain exchange set a historical high for daily outflow, with over 3,500 Bitcoins withdrawn, speculated to be institutional buying.

Currently, 9 funds hold Bitcoin worth over 23 billion dollars. Accumulating Bitcoin has become a primary investment strategy for major institutions. An on-chain data analysis expert stated that as institutional investors enter the market in large numbers, the liquidity of cryptocurrency exchanges is decreasing.

A large number of Bitcoins were withdrawn from exchanges and are mostly transferred to custodial wallet addresses. At the same time, the amount of Bitcoin held by miners is also continuously increasing. The reduction in market supply will drive the price of Bitcoin to rise, but it may also lead to liquidity risks in the future.

Despite recent regulatory issues faced by some cryptocurrency projects, there is still positive news on the regulatory front. The U.S. Office of the Comptroller of the Currency recently stated that it will allow federal banks to use stablecoins for payment and other activities. This is seen as reinforcing Bitcoin's status as "digital gold" and is also referred to as a "huge victory for the crypto industry and stablecoins."

A well-known financial media outlet reported on Monday, U.S. time, that Bitcoin has surpassed $30,000. The global market strategy head of a major investment bank predicts that Bitcoin's long-term price target could exceed $146,000, and it is expected to capture part of the gold market share in the future.

It is worth noting that on January 1st of this year, the Bitcoin to gold exchange rate reached a historical high, surpassing the peak during the 2017 bull market. The market generally expects that the price of Bitcoin may further rise to the range of 50,000-100,000 USD, but the specific trend remains to be observed.