• Business - Your Money
  • Updated: February 14, 2024

Bitcoin's market capitalisation hits $1 trillion milestone, surpasses $51,000 mark

Bitcoin's market capitalisation hits $1 trillion milestone,

Bitcoin's market value surpassed $1 trillion on Wednesday, according to CoinMarketCap data, which represents the cryptocurrency's first increase over this barrier since late 2021.

The cryptocurrency also topped $51,000 at the same time, a mark it hadn't hit since December 2021.

CoinDesk statistics show that the price of Bitcoin was trading at $51,229, up 3% from the previous day.

With Bitcoin seeing a 21% increase this year alone, this uptrend represents a prolonged rise that began in January of last year. Anticipation surrounding the licencing of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), which was eventually granted in January of this year, caused the cryptocurrency to skyrocket by over 150% in 2023.

After the ETF was approved, there was a brief decline in the price of Bitcoin until a fresh upswing started later in January as traders focused on the impending "halving" event that was set for April. 

Every four years, the rewards for Bitcoin miners are halved, a move that has traditionally preceded fresh all-time highs for the cryptocurrency in the months that follow.

In November 2021, Bitcoin reached its previous all-time high of a little under $69,000.

Newly-issued spot Bitcoin ETFs saw net inflows of $1.1 billion last week, which is mainly responsible for the current increase. 

Although ETF issuers must purchase and sell Bitcoin in order to support the derivative, ETFs allow investors to follow the price movement of Bitcoin without actually owning the underlying cryptocurrency.

There have also been price increases for other cryptocurrencies. For example, Ether, a cryptocurrency linked to Ethereum, reached a record high of $2,759.87 on Wednesday, its best since May 2022.

Investors believe that the SEC will approve an Ether ETF later this year.

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