Bitcoin market cap scales $1 trillion

The value of Bitcoin has skyrocketed to $52,000 since November 2022, more than tripling in value. The surge in the cryptocurrency’s value has led to an increase in investor interest, with its market capitalisation exceeding $1 trillion for the first time since 2021. This surge is attributed to the limited supply of Bitcoin and the recent launch of exchange-traded funds that make it easier for retail investors to put money into the asset.

The high-profile implosion of crypto exchange FTX in 2022 triggered liquidity crises at several smaller crypto firms, as reported by CNN. However, Bitcoin’s recent gains have attracted investors to the cryptocurrency market, with its value rising nearly 13 per cent since US regulators approved investment firms to offer exchange-traded funds that directly invest in the cryptocurrency.

Despite the current spike in value, Bitcoin’s price remains below its all-time high of $69,000 reached in November 2021. Nonetheless, industry players expect Bitcoin to continue climbing, with the upcoming “halving” event contributing to bullishness in the market. The halving feature automatically halves the rate of new coins entering circulation, and it is expected to take place roughly every four years.

Overall, the surge in Bitcoin’s value has reignited investor interest in the cryptocurrency, with the market capitalisation exceeding $1 trillion. The limited supply of Bitcoin and the recent approval of exchange-traded funds for the cryptocurrency have contributed to its recent gains. Additionally, industry players anticipate continued growth in Bitcoin’s value, with the upcoming “halving” event expected to further drive bullish sentiment.