Hong Kong stock concept tracking | Bitcoin first time reached $71,000 per coin, options betting eyes on $100,000. Related concept stocks are expected to rise with the wind (with concept stocks attached).

Zhitong App learned that on March 11th, Bitcoin surged over 2% to surpass $71,000 per coin, hitting a new high. According to companiesmarketcap, the market value of Bitcoin has risen to $1.398 trillion, surpassing silver ($1.38 trillion), making it the eighth largest asset globally. At the same time, Ethereum broke through $4,000 per coin for the first time since December 2021. CoinLedger, a cryptocurrency tax platform, stated in a recent research report that Bitcoin has only halved three times so far, with prices soaring an average of 400% in the year following the last two halvings. Based on whether Bitcoin reaches $69,000 in April halving, the study predicts a future price of $115,000. Relevant stocks include Meitu Inc. (01357), New Fire Technology Holdings (01611), Okcoin Cloud Chain (01499), and OSL Group (00863).

Leo Mizuhara, the founder and CEO of decentralized financial institution asset management platform Hashnote, stated, "I don't think it's crazy for Bitcoin to reach $80,000 by the end of the month. I expect those FOMO (fear of missing out) investors to join in soon. ETFs have opened the door to more retail investors."

In fact, in the options market, there is ongoing enthusiasm for bullish options betting on Bitcoin breaking through $80,000 and even $100,000. According to data compiled by Amberdata, the number of open contracts for Bitcoin call options with strike prices of $80,000 and $100,000 has surged by around 12% in the past 24 hours.

Looking at the reasons behind this current Bitcoin rally, the traditional supply and demand principle seems to be the most mentioned reason by industry insiders. After the approval of the spot Bitcoin ETF by the U.S. SEC in January, demand for Bitcoin surged. Data shows that since trading began on January 11th, the net inflow of funds into 9 new Bitcoin spot ETFs has reached around $10 billion. This influx of funds has led these funds to purchase Bitcoin to meet demand, thereby driving up the price.

On the supply side, the computer code supporting Bitcoin sets a hard limit of 21 million coins. Over 90% of the supply has already been mined. To expand supply, algorithms run by digital computers "mine" new coins. However, only about 900 new Bitcoins can be mined per day, and it is expected that this rate will further decrease after the upcoming cyclical event known as "halving" next month.

Some analysts point out that acquiring Bitcoin from investors holding large amounts has become increasingly difficult. Analyst Manuel Villegas from Swiss private bank Swissquote stated in a research report last week that about 80% of Bitcoin supply has not changed hands in the past six months. Coupled with ETF inflows and limited Bitcoin inventory available for sale on exchanges, this "may exacerbate supply constraints." Galaxy Digital's research director, Alex Thorn, stated, "Bitcoin is currently one of the scarcest assets in the world and is becoming increasingly scarce."

With the continuous rise in price, the Matthew effect of the strong getting stronger has started to take effect in the past few weeks, attracting more and more investors to join in. A group of insiders in the industry vividly illustrated that when the price of Bitcoin was stagnant at $25,000, there was little interest, but now, after breaking through $65,000, there is a long line forming at the door of Bitcoin.

It is worth noting that Hong Kong has approved futures-based Bitcoin ETFs. Currently, there are two listed products, Southern Dongying Bitcoin Futures and Samsung Bitcoin Futures, with relatively small assets under management (AUM), each fund having less than $100 million. Wind data shows that the net asset value of Southern Dongying Bitcoin Futures ETF has surged by 134.51% in 2023. Industry experts believe that as the Bitcoin spot ETF market matures, more and more investors will integrate Bitcoin into traditional investment portfolios, and the marketing activities carried out by these ETF issuers will continue to support the price of Bitcoin.

In addition, in the two weeks following the June FOMC meeting of the Federal Reserve, the Fed may officially cut interest rates for the first time, and the year-end U.S. presidential election are positive factors for the future price of Bitcoin.

CITIC Securities stated that the approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) to some extent regulates the way cryptocurrencies are traded. It is expected that the cryptocurrency market, which was previously dominated by retail investors, will undergo certain changes, and more liquidity will bring short-term prosperity to cryptocurrencies in the first half of 2024.

Related concept stocks:

Meitu Inc. (01357): In the past few years, the company purchased Bitcoin and Ethereum. As of June 2023, the company holds 940.497 Bitcoins and 31,000 Ethereums, with the combined holding cost accounting for about 10% of total assets. According to the disclosed cost in the semi-annual report, the company made a profit of 161 million yuan from holding Bitcoin and 288 million yuan from holding Ethereum, totaling 450 million yuan.

New Fire Technology Holdings (01611): Formerly known as Huobi Technology, it is currently one of the world's largest cryptocurrency platforms. New Fire Technology Holdings mainly provides virtual asset trading and technical solution services, including providing virtual asset lending asset management to customers and offering over-the-counter trading platforms, acting as an exchange.

OKLink (01499): According to the half-year report for the 2024 fiscal year, the company is "heavily invested" in digital currencies, with digital assets totaling 800 million Hong Kong dollars, accounting for 75% of total assets. As disclosed, the company holds 1,725 Bitcoins and 6,571 Ethereums, with a total value accounting for 43% of total assets, and 21.7% of assets holding stablecoins.

OSL Group (00863): The company participated in UBS Group's investment-grade subscription token pilot issuance in Hong Kong, covering the entire product issuance cycle. The project involves UBS Group using the Ethereum public chain to issue subscription tokens linked to OSL digital asset securities and stocks.