What it means for BTC to have cracked $1 trillion in market cap
The Bitcoin price hit $55,000 per coin a few hours ago – and with a circulating supply of more than 18.6 million BTC, that brings the total market cap of the first cryptocurrency to $1 trillion. But what does this incredible milestone mean for the leading cryptocurrency?
From $100 billion to $1 trillion – in one year
It was only a few months ago when Bitcoin’s market capitalisation matched that of VISA and Mastercard and other major banks. Weeks ago, it Bitcoin Rush surpassed the market capitalisation of Tesla, shortly after the company announced that it had also bought BTC to boost its corporate reserves.
Now BTC has hit another major milestone, surpassing a total market capitalisation of over USD 1 trillion.
Bitcoin the asset and the network are valued in their entirety at a trillion dollars. The achievement is nothing short of astonishing. Everyone who saw this outcome coming is now rewarded with a piece of this massive pie.
What is even more impressive is that the total value of Bitcoin has risen from just $100 billion on Black Thursday almost a year ago to ten times that value. And this is while most other assets have struggled to grow steadily.
The stock market has stagnated recently and gold is in a downtrend as capital flows instead into Bitcoin (To buy Bitcoin cheap platform comparison). Now that Bitcoin has reached a market cap of $1 trillion, BTC will begin to demand a place in the portfolios of every investor worldwide. Here’s why.
What the $1 trillion market cap means for BTC
With a market cap of less than $100 billion, Bitcoin never had the liquidity to be noticed by companies or institutions. The market cap has always been considered „tiny“ compared to stocks and gold, but that is no longer the case at $1 trillion.
$1 trillion is essentially a key value – not necessarily for individual investors, but it could be the „all-clear“ sign for more companies to jump into the already scarce and trending cryptocurrency.
Most signs suggest that Bitcoin has not yet reached the point of „mania“, but after surpassing the $1 trillion market cap, FOMO could gain momentum as investors with higher net worths realise they could be stuck paying higher and higher prices to get in.