:max_bytes(150000):strip_icc()/GettyImages-453930217-42848c04ff58410d952e1a5b65a00929.jpg "Bitcoin Market Cap Tops $1 Trillion Again—That’s Almost Twice That Of Tesla")
Key Takeaways
- Bitcoin crossed the $1 trillion market cap threshold for the first time since December 2021.
- The world’s largest cryptocurrency enters market value territory that is occupied predominantly by global technology giants.
- Bitcoin’s recent positive price action has occurred while the month-old spot bitcoin exchange-traded funds (ETF) are experiencing strong inflows.
Bitcoin’s (BTCUSD) market capitalization swelled to more than $1 trillion for the first time since December 2021 as it traded firmly above the $51,000 level Wednesday, even briefly going past $52,000.
That puts the market value for the world’s largest cryptocurrency in territory that is normally the domain of global tech giants such as Meta Platforms (META), and it’s almost double that of Tesla (TSLA).
Is This Bitcoin Rally Here To Stay?
The last time bitcoin traded at these levels it was on its way back down from its all-time high around $69,000. However, the state of the bitcoin and crypto market today is quite different from what it was.
Back then, the market was much frothier. Today, bitcoin is in a bull market on the back of spot bitcoin ETF adoption and the upcoming halving event.
The past four full days of spot bitcoin ETF trading have all been some of the largest in terms of inflows, with more than $2 billion in net inflows occurring since Thursday.
Blackrock’s iShares Bitcoin Trust (IBIT) has been the largest beneficiary of this activity, seeing roughly $1.4 billion of inflows during that time and growing to more than $4.6 billion in market value. Notably, the outflows from Grayscale Bitcoin Trust (GBTC) have also not been as large as they were in previous weeks.
“There is hundreds of millions of dollars per day flowing into these bitcoin ETFs, and there is only $40 (million) to $45 million of net-new bitcoin being produced,” said technology investor Anthony Pompliano in an interview with Fox Business Tuesday. “So, there’s twelve-and-a-half times more demand than there is supply being created every single day. If there’s that much demand and that little supply, the price has got to go up to accommodate everyone.”