Crypto News– On Wednesday morning, Bitcoin surged past the $1 trillion market cap level, marking a significant milestone for the leading cryptocurrency. Its price rose by 4.6% over the previous 24 hours, reaching $51,306, as reported by data from CoinGecko.
Bitcoin Reaches 1 Trillion Dollars Market Cap Threshold
Bitcoin had not surpassed the trillion-dollar market cap threshold since December 2021. This week, it also breached the $50,000 mark for the first time since December 2021.
Additionally, on Wednesday, the collective market cap of all cryptocurrencies reached a milestone of $2 trillion, a level last seen in April 2022. Bitcoin’s rally has largely influenced the broader crypto market.
The climb in Bitcoin prices can be attributed to the steady inflow of funds into spot bitcoin ETFs since February 7th. Excluding Grayscale’s GBTC, which underwent conversion from an existing trust, U.S. spot bitcoin ETFs have accrued over $10 billion in assets after their launch on January 11th.
Market analyst Craig Erlam from online trading provider Oanda noted that apart from ETF inflows, Bitcoin has benefited from investors’ increased risk appetite and the anticipation of lower interest rates. This combination of factors has contributed to Bitcoin’s upward momentum in recent days.
“After a couple of difficult years, the stars aligned for bitcoin,” Elam wrote in an email to Unchained. “The combination of a favorable environment and some important developments for the instrument itself has given it a huge lift. And with the halving event on the horizon, attention will remain on bitcoin which is exactly what the crypto community will want.”
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