HashKey Exchange February Observation: Users' average unrealized profit on BTC exceeds 40%, BRC20 attracts attention from high-net-worth individuals

Author: HashKey Exchange

In February, after Bitcoin broke the $60,000 mark, it did not experience the expected pullback but instead continued to rise. On March 5, Bitcoin surpassed $68,000 (currently reported at $66,800), approaching its all-time high, with a monthly increase of over 50%.

According to 8marketcap data, Bitcoin's market capitalization ($1.349 trillion) has surpassed that of silver ($1.346 trillion), making it the eighth largest asset in the world by market capitalization.

Cryptocurrency exchanges have also seen increased trading volume and capital inflow due to the overall rise in cryptocurrency prices. In February, the platform asset accumulation amount of Hong Kong licensed virtual asset exchange HashKey Exchange surged by 40% compared to January, with BTC's weekly trading volume exceeding HKD 15 billion at one point.

As Bitcoin continues to rise, the floating profit rate of Bitcoin assets has outperformed major global stock markets and asset classes during the same period.

According to HashKey's latest monthly report for February, as of the end of February, HashKey clients had an average BTC holding period of 61 days, with floating profits exceeding 40%.

What forces are driving the overall rise that began in February? Will the crypto market undergo a significant correction or continue to rise? What trading data is worth paying attention to? Based on the monthly report released by HashKey Exchange, we review the characteristics of the crypto market in February and the important events to watch in the market ahead through the core data changes on its exchange and industry insights from regions like Hong Kong.

Bitcoin's monthly increase exceeds 50%, HashKey BTC weekly trading volume breaks HKD 15 billion

Currently, in Hong Kong, only HashKey and OSL hold retail business licenses for virtual currencies. 24 related entities, including OKX, Bybit, Futu Securities, and Tiger Brokers, have submitted applications. On February 29, the Hong Kong Securities and Futures Commission's website stopped accepting applications for virtual asset platform licenses, requiring cryptocurrency exchanges operating in Hong Kong without a license to cease operations by May 31.

As an exchange holding a virtual asset license in Hong Kong, HashKey Exchange currently ranks in the top 15 on CoinGecko and is the largest licensed virtual asset exchange in Hong Kong. Since its launch on August 29, 2023, until the end of February this year, HashKey Exchange's cumulative trading volume has exceeded HKD 350 billion.

As the crypto market enters a bull market, HashKey Exchange has seen a significant increase in platform trading data after nearly six months of operations. In February, the platform asset accumulation amount of HashKey Exchange surged by 40% compared to January, with monthly trading volume reaching HKD 31.8 billion, and BTC's weekly trading volume exceeding HKD 15 billion at one point.

In addition to the overall growth in trading data, HashKey Exchange's institutional business also achieved breakthroughs in multiple areas in February.

In terms of stablecoins, HashKey Exchange supported the upcoming launch of the HKD stablecoin by Circle, and announced a cooperation intention with Circle and Allinpay International regarding the HKD stablecoin business, which will cover both online and offline trading scenarios for the stablecoin.

In terms of compliance, HashKey OTC received approval from the Monetary Authority of Singapore, marking an important milestone in HashKey's path to full compliance.

Regarding brokerage cooperation, in February, HashKey disclosed a partnership with Hong Kong licensed institution Huayang Securities, which will officially launch trading accounts on HashKey Exchange.

According to HashKey Exchange's February monthly report, as of now, HashKey Exchange's partners include Huayang Securities, Huaxia Fund (Hong Kong), Pando Financial, and 10 other brokerage institutions, as well as Shengyang Group, Hushi Media, Blueport Interactive, and 6 other Hong Kong-listed companies.

Users' BTC average holding floating profit exceeds 40%, BRC 20 becomes the investment focus for Hong Kong's high-net-worth individuals

With the continuous rise of Bitcoin, the floating profit rate of Bitcoin assets has outperformed major global stock markets and asset classes during the same period.

According to HashKey's latest monthly report, as of the end of February, HashKey clients had an average BTC holding period of 61 days, with an average holding price of approximately $44,214, and floating profits exceeding 40%. The Nikkei Index, S&P 500, and spot gold increased by 19.89%, 8.31%, and 1.8%, respectively, while the Hang Seng Index decreased by 1.19%.

The significant rise in Bitcoin has also driven a broad increase in altcoins, particularly within the Bitcoin ecosystem and BRC20 tokens, with Ordi's monthly increase exceeding 50% and Sats' monthly increase exceeding 60%. According to HashKey's observations, the Bitcoin ecosystem and BRC20 tokens are becoming the investment focus for high-net-worth individuals in Hong Kong.

On February 27, HashKey, in collaboration with Animoca Brands, InvestHK, DigiFT, and EmergentX, held a roundtable meeting. Over 60 representatives from family offices, professional investors, and the Web3 industry expressed great interest in the Bitcoin ecosystem BRC20, considering it one of the important investment directions.

What factors drove Bitcoin's surge in February, will it correct or continue to rise?

According to HashKey Exchange analysis, the cumulative net inflow into Bitcoin spot ETFs exceeded $6 billion, driving Bitcoin's rapid rise in February.

After March, major events impacting the crypto market include the Cancun upgrade, the Federal Reserve's latest interest rate decision, and the Hong Kong Web3 Carnival. HashKey Exchange believes that the macro environment and liquidity market will continue to be favorable.

Regarding interest rate cuts, expectations for the Federal Reserve to restart rate cuts by mid-year remain unchanged, with interest expenses on $34 trillion in national debt increasing and dollar liquidity remaining loose; concerning the U.S. elections, it is expected that inflation data and non-farm payroll data will not deteriorate significantly at present.

In terms of capital inflow, Asian capital is expected to attract significant funds following the launch of Hong Kong ETFs, while large U.S. institutions are waiting for a complete release of risks after rate cuts, indicating that Bitcoin's purchasing power continues to have room for growth.

Additionally, with the success of Bitcoin spot ETFs, the market continues to focus on the launch of Ethereum spot ETFs, which is expected to be advanced to May, attracting a large amount of traditional asset allocation.

Regarding retail investor sentiment, boosted by Bitcoin halving and Ethereum upgrades, crypto investments remain in a state of high risk appetite. In the upcoming volatility, crypto users need to seize the right timing and manage risks.