April 19, 2024
Bitcoin Surpasses $1 Trillion Market Cap
Bitcoin News

Bitcoin Surpasses $1 Trillion Market Cap

The market capitalization of Bitcoin’s circulating supply surpassed $1 trillion as the price of BTC surged beyond $51,000. The current circulating supply of Bitcoin stands at 19,627,443 BTC, constituting 93.46% of its total capped supply of 21 million.

The positive investor sentiment, driven by a prolonged bullish market and the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, among other factors, is influencing various facets of the ecosystem.

Increased investments in Bitcoin, both from individual and institutional players, have contributed to the sustained appreciation of its price.

Earlier, in November 2021, Bitcoin achieved a market capitalization milestone of $1 trillion amid a bullish market trend that propelled BTC to a temporary peak of $69,000. Simultaneously, this bullish trend extended throughout the broader crypto ecosystem, marking the first instance of a collective market capitalization reaching $3 trillion in the cryptocurrency space.

The impending Bitcoin halving is anticipated to significantly contribute to a rise in the market value of Bitcoin. Grayscale’s analysis suggests that Bitcoin ETFs could bring about a fundamental shift in the cryptocurrency’s demand-supply dynamics, offsetting the selling pressure resulting from the halving.

According to Grayscale’s assessment, the current mining rate of 6.25 Bitcoin per block, valued at $43,000 each, translates to an annual total of around $14 billion. Put differently, to sustain the existing price levels, there needs to be a buying pressure equivalent to $14 billion throughout the same timeframe.

“Post-halving, these requirements will decrease by half: with only 3.125 Bitcoin mined per block, that equates to a decrease to $7 billion annually, effectively easing the sell pressure.”

The operational expenses of the mining community are directly influenced by the price of Bitcoin. The forthcoming halving event is set to reduce the mining reward by half, down to 3.125 BTC. This necessitates that Bitcoin sustains a substantial market value to ensure the viability of mining as a profitable business model.

Image By WangXiNa

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