Bitcoin’s market capitalization soared to an unprecedented $1.30 trillion on Monday, eclipsing its previous high of $1.27 trillion recorded in November 2021, as the cryptocurrency’s price continued its meteoric rise.
Surpassing $66,000 on Monday morning, Bitcoin is now within striking distance of its all-time peak of just over $69,000, also achieved in November 2021. The surge in market capitalization is attributed to the increased number of bitcoins in circulation, now totaling 19.64 million, with miners constantly adding new supply to the market.
Bitcoin has reached an all-time high against major currencies such as the euro and the British pound, surpassing 60,000 euros for the first time on Monday.
The spotlight is on US-listed bitcoin exchange-traded funds (ETFs). Since the onset of February, these ETFs have been acquiring an average of 3,500-4,300 coins daily, a revelation shared by three analysts affiliated with crypto money managers. “There is simply not enough bitcoin to accommodate all the new demand, and so natural supply/demand dynamics are driving prices higher,” said Grayscale Investments research head Zach Pandl.
#Bitcoin de marketcap olarak ath i kirdik 😎 pic.twitter.com/wNFba6jrGe
— The Captain 🌐 (@_TheCaptain___) March 4, 2024
Notably, this acquisition rate surpasses the mere 900 coins generated daily by the bitcoin network during the same timeframe. This heightened demand from ETFs underscores the escalating institutional interest in Bitcoin, highlighting its growing acceptance as a legitimate asset class among traditional investors. As such, market observers continue to closely monitor these ETFs’ activities, anticipating their potential impact on Bitcoin’s price trajectory and market dynamics in the days ahead.
