Business and Economy

Bitcoin hits $51,229 price as capitalization crosses $1 trillion mark

The market capitalization of bitcoin value surpassed $1 trillion on Wednesday, a milestone not seen since late 2021, as reported by CoinMarketCap. Additionally, the cryptocurrency reached the $51,000 mark during the day, marking its first time hitting this price since December 2021.

According to CoinDesk data, bitcoin was trading around $51,229 at 6.15 a.m. ET, showing a 3% increase from its price 24 hours prior.

This price surge continues the rally that began in January of last year, with bitcoin experiencing a growth of over 21% this year alone.

In 2023, bitcoin saw a rally of more than 150% in anticipation of the U.S. Securities and Exchange Commission’s approval of bitcoin exchange-traded funds (ETFs), which was eventually granted in January of this year.

Following the ETF approval, the price of bitcoin experienced a dip. However, a new rally began in late January as investors turned their attention to the upcoming “halving” event in April. This event, written in bitcoin’s code, occurs every four years and reduces the rewards given to bitcoin miners by half, thereby decreasing the cryptocurrency’s supply in the market. Historically, halving events have preceded bitcoin reaching new all-time highs in the following months.

Bitcoin’s previous record high was just under $69,000 in November 2021.

The current rally seems to be fueled, in part, by the high demand for ETFs. Newly-issued spot bitcoin ETFs recorded net inflows of $1.1 billion last week.

Other cryptocurrencies, such as Ether associated with Ethereum, have also experienced price increases. Ether reached $2,759.87 on Wednesday, its highest level since May 2022. Investors are optimistic about the potential approval of an ether ETF by the SEC this year. SOURCE: CNBC.COM by Arjun Kharpal

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