Key Points:
- Bitcoin’s market cap surpassed $1 trillion for the first time since late 2021, with the price breaking the $51,000 mark.
- The entire cryptocurrency market capitalization rebounded to over $2 trillion, a level not seen since April 2022.
Bitcoin market cap surpassed $1T, with prices over $51,000. The rally is due to ETF approval and upcoming ‘halving’ event.
The value of all Bitcoin in market capitalization reached above $1 trillion on Wednesday, the first time since late 2021.
Bitcoin Market Capitalization Surpasses $1 Trillion
The cryptocurrency broke through the $51,000 level, the first time since December 2021, trading around the $51,700 mark, up approximately 4% from its price 24 hours prior. This rise continues a rally that began last year; Bitcoin is up over 21% this year alone.
The rally is partly attributed to the U.S. Securities and Exchange Commission’s approval of Bitcoin exchange-traded funds (ETFs), which saw Bitcoin increase by over 150% in 2023.
Despite a dip after the ETF approval, a new rally began in late January as investors anticipate the ‘halving,’ a supply-restricting event in Bitcoin’s code that occurs every four years and is slated for April. This event halves the rewards given to Bitcoin miners, reducing the cryptocurrency’s volume on the market.
Readmore: Crypto Fear and Greed Index Hits Highest Level Since 2021
Bitcoin ETF Approval and Anticipated ‘Halving’ Fuel Rally
Historically, the halving has led to Bitcoin hitting new all-time highs. The latest rally is partly fueled by high demand for ETFs, with newly-issued spot Bitcoin ETFs recording net inflows of $1.1 billion last week. Other cryptocurrencies also saw price rises, with Ether hitting its highest level since May 2022.
Over $138 million in cryptocurrency short positions were liquidated in the past 24 hours, causing the wipeout of over $98 million in Bitcoin positions. The entire cryptocurrency market capitalization rebounded back above $2 trillion on Wednesday, a high not seen since April 2022.
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