Key Takeaways
- Bitcoin’s market capitalization exceeded $1 trillion, reaching levels not seen since December 2021.
- The cryptocurrency now competes with major global technology companies in market value.
- Recent positive price movements coincide with strong inflows into new spot bitcoin exchange-traded funds (ETF).
Bitcoin Market Cap Hits $1 Trillion
Bitcoin’s market capitalization surpassed $1 trillion as it traded above $51,000, briefly touching $52,000 on Wednesday.
Comparison with Global Tech Giants
This milestone places Bitcoin in the realm of global tech giants like Meta Platforms (META), nearly doubling Tesla’s market value.
Is Bitcoin’s Rally Sustainable?
Unlike previous instances, the current bitcoin market environment is distinct. The ongoing bull market is supported by the adoption of spot bitcoin ETFs and the upcoming halving event.
Recent trading days have witnessed significant inflows into spot bitcoin ETFs, totaling over $2 billion in net inflows since Thursday.
Blackrock’s iShares Bitcoin Trust (IBIT) has notably benefited from this trend, attracting around $1.4 billion in inflows, bringing its market value to over $4.6 billion. Conversely, outflows from Grayscale Bitcoin Trust (GBTC) have reduced compared to previous weeks.
Technology investor Anthony Pompliano highlighted the substantial demand for bitcoin ETFs, far exceeding the daily supply. This demand-supply imbalance is expected to drive prices higher to meet market needs.