Bitcoin’s Market Cap Surpasses $1 Trillion as Price Exceeds $51,000
This Wednesday, Bitcoin’s market cap surpassed the $1 trillion mark for the first time since late 2021. At the same time, Bitcoin crossed the $51,000 level, a first since December 2021, continuing a bullish trend that started in January last year. To date, Bitcoin has recorded a gain of over 21% in 2024.
The Impact of Bitcoin Spot ETF in the United States
The approval by the United States Securities and Exchange Commission of the first US Bitcoin Spot ETF on January 10, 2024, marked a turning point. Since then, about ten of the largest global financial asset managers have filed applications with the SEC to launch a Bitcoin ETF. Despite a slight drop after the ETF approval, a new rally began in late January, with investors now turning their attention to the halving event scheduled for April, a supply-reducing event historically preceding new highs for Bitcoin.
Ethereum Benefits from Bitcoin’s Surge
This latest phase of the surge seems to be partially fueled by the strong demand for ETFs. Newly issued Bitcoin Spot ETFs recorded net inflows of $1.1 billion last week.
Other cryptocurrencies have also experienced price increases. ETH, the currency associated with Ethereum, is quickly approaching $2,800.
