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Bitcoin Breaks $1 Trillion Market Cap as Price Hits Above $51,000

The total market value of Bitcoin’s circulating supply surpassed the $1 trillion milestone as the price of BTC surged beyond $51,000. Currently, there are 19,627,993 BTC in circulation, accounting for 93.47% of its total capped supply of 21 million.

Bitcoin market capitalization crossed the $1 trillion mark. Source: CoinMarketCap

The positive sentiment among investors, driven by a sustained bull market and the approval of Bitcoin exchange-traded funds (ETFs) in the United States, has reverberated throughout the ecosystem. Increased investments in Bitcoin, from both individual and institutional sources, have contributed to its recent price appreciation.

Source: CoinMarketCap

In November 2021, Bitcoin achieved a $1 trillion market cap during a bullish period, briefly peaking at an all-time high of $69,000. This rally extended across the crypto space, resulting in a combined market capitalization of $3 trillion.

The forthcoming Bitcoin halving is anticipated to play a pivotal role in further boosting its market price. Grayscale’s analysis suggests that Bitcoin ETFs could alter the demand-supply dynamics, mitigating the sell pressure typically associated with halving events.

Currently, with a mining rate of 6.25 Bitcoin per block, approximately $14 billion worth of buy pressure is needed annually to sustain current prices, assuming a price of $50,000 per BTC. Following the halving, this requirement will decrease by half to $7 billion annually, as the mining reward reduces to 3.125 BTC per block.

The price of Bitcoin directly influences the operational costs of the mining community. With the impending halving event reducing the mining reward to 3.125 BTC, maintaining a high market value for BTC becomes crucial to ensure the viability of the mining business model.

Wasif Shakir

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