.The market value of all bitcoins in circulation during these moments of trading today, Wednesday, rose above one trillion dollars for the first time since late 2021, according to data available on the Investing Saudi website. This coincides with the combined market value of the digital currency market as a whole exceeding the $2 trillion barrier as well.
. The cryptocurrency also broke through the $51,000 level during the day, the first time it has reached this price since December 2021.
. Bitcoin was trading at around $51,630 during these moments, up about 3% in the past 24 hours.
. Bitcoin continued its price rises that began in January last year. This year alone, Bitcoin has risen by more than 21%.
. Bitcoin rose more than 150% in 2023, as markets awaited the US Securities and Exchange Commission's approval of Bitcoin exchange-traded funds – or ETFs – which eventually came in January of this year.
. The price of Bitcoin fell after the launch of ETFs in the US. A new rally began in late January, with investors now looking towards the “halving” – a supply-restricting event of Bitcoin that occurs every four years and is scheduled to happen in April.
. When a halving occurs, the rewards given to Bitcoin miners are cut in half, reducing the amount of cryptocurrency on the market. Historically, halvings have been preceded by Bitcoin reaching all-time highs in the following months. While Bitcoin's last record high was just under $69,000 in November 2021.
. The latest leg of the rally appears to be driven in part by higher demand for ETFs. Newly released spot bitcoin ETFs recorded net inflows of $1.1 billion last week.
. ETFs are an investment product that tracks the price movement of another asset, in this case allowing investors to trade Bitcoin without owning the underlying cryptocurrency. However, ETF issuers will need to buy and sell Bitcoin to support the derivatives.
. Meanwhile, the crypto market has seen notable rises in the prices of other cryptocurrencies, with Ethereum, the currency linked to Ethereum, reaching $2,759.87, its highest level since May 2022. Investors are hoping that the Ethereum exchange-traded fund will be approved by the FCA. Securities and exchanges this year.
. $BTC
