Bitcoin Surpasses $1 Trillion in Total Value, Hits 25-Month High

Bitcoin, the world’s largest cryptocurrency, achieved a significant milestone on Wednesday as its total value exceeded $1 trillion for the first time since November 2021. The surge in inflows to U.S. spot bitcoin exchange-traded funds (ETFs) has been a key driver in supporting cryptocurrency prices, Reuters news report said.
Bitcoin exchangeThe price of Bitcoin soared to as high as $52,079 on Wednesday, marking its latest 25-month high. At the time of reporting, it was trading at $51,690, up 4.29 percent, with its market cap reaching $1.013 trillion according to price platform Coingecko.

The cryptocurrency has witnessed a rally of around 22 percent since the beginning of February, positioning it for its most substantial monthly increase since October.

Analysts attribute much of the recent price action to robust inflows into new U.S.-listed ETFs. Capital flows into the 11 U.S. spot bitcoin ETFs surged to $1.64 billion in the week leading up to Wednesday, as per LSEG Lipper data. Over the past five trading sessions alone, these ETFs attracted inflows of $409 million, following their regulatory approval and commencement of trading in January.

B2C2 analysts emphasized the symbiotic relationship between price movements and capital flows in the crypto market, suggesting that sustained momentum could fuel further inflows and price appreciation for spot bitcoin.

In a separate development, bankrupt crypto lender Genesis Global Capital received approval from a U.S. court to sell approximately $1.6 billion worth of shares in Grayscale Investments’ spot bitcoin ETF to repay creditors.

Despite Bitcoin’s current surge, its market cap remains below its all-time high of $1.28 trillion reached in November 2021. Nonetheless, investments in bitcoin still constitute over half of the $2.01 trillion total market capitalization of the cryptocurrency market, which includes assets like ether and other digital coins.

The positive momentum in the cryptocurrency market also spilled over to U.S.-listed cryptocurrency companies, with shares of Coinbase climbing 13.5 percent, while miners Riot Platforms and CleanSpark gained 12.2 percent and 11.3 percent, respectively.

Bitcoin’s resurgence comes after a challenging period in 2022 and early 2023, marked by global monetary tightening and high-profile failures at crypto firms. However, hopes of a softer economic landing and the introduction of spot bitcoin ETFs have reinvigorated sentiment, positioning bitcoin and other cryptocurrencies for further growth.

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