News
Bitcoin’s market capitalization once again exceeds $1 trillion: almost double that of Tesla
Key points
- Bitcoin surpassed the $1 trillion market capitalization mark for the first time since December 2021.
- The world’s largest cryptocurrency enters market value territory predominantly occupied by global technology giants.
- Bitcoin’s recent positive price action has occurred as spot Bitcoin Exchange Traded Funds (ETFs), launched a month ago, are experiencing strong inflows.
Bitcoin (BitcoinUSD) market capitalization rose above $1 trillion for the first time since December 2021, having traded firmly above the $51,000 level on Wednesday, even briefly surpassing $52,000.
This places the market value of the world’s largest cryptocurrency in territory that is normally the domain of global tech giants like Meta Platforms (HALF), and is almost double that of Tesla (TSLA).
Is this Bitcoin rally here to stay?
The last time bitcoin traded at these levels it was falling from its all-time high of around $69,000. However, the state of the bitcoin and cryptocurrency market today is very different from what it once was.
The market was much frothier then. Today, Bitcoin is in a bull market due to Adoption of spot bitcoin ETFs and the next halving event.
The last four full days of Bitcoin spot ETF trading have all been among the largest in terms of inflows, with more than $2 billion in net inflows occurring since Thursday.
iShares Bitcoin Trust by Blackrock (IBIT) was the largest beneficiary of this activity, recording approximately $1.4 billion in inflows during that period and growing to over $4.6 billion in market value. In particular, the outflows from Grayscale Bitcoin Trust (GBTC) were not as large as in previous weeks.
“There are hundreds of millions of dollars a day flowing into these bitcoin ETFs, and only $40 million to $45 million of net new bitcoin is being produced,” tech investor Anthony Pompliano said in an interview on Fox Business Tuesday . “So, twelve and a half times more demand is created than supply every day. If there is so much demand and so little supply, the price has to rise to keep everyone happy.”