Bitcoin Regains $1 Trillion Market Cap

Bitcoin's meteoric rise to the $51,000 mark has propelled its market capitalization to a staggering $1 trillion, a milestone not reached since December 2021.

This significant increase has seen the total value of the nearly 20 million Bitcoin in circulation surging to its two-year high amid growing ETF capital inflows.

The price of Bitcoin plummeted to disappointing lows in the 2022 market crash that saw the collapse of leading exchanges like FTX. In that meltdown, Bitcoin price slumped to its lowest 2020 level as the crypto market came crashing down.

However, in 2023 Bitcoin started clawing back some ground and with the approval of Bitcoin ETFs on the horizon, the hope for a full market recovery was quite high. 

Recent Price Rally

On February 8, the price of Bitcoin surged above the $45,000 mark for the first time since the approval of Bitcoin ETFs. The steady price rally has continued to add significantly to this year’s percentage gains, with Bitcoin breaching the $48,000 and $50,000 levels.  

With $10 billion total AUM, analysts believe the that Bitcoin ETFs surge is largely behind the on-going bitcoin revival. 

"Bitcoin's triumphant ascent past $51,000 and the remarkable achievement of surpassing a $1 billion market cap stand as resounding milestones. There is, however, evidence to suggest that much of this upward momentum results from spot Bitcoin ETFs accumulating more Bitcoins’’, Indian web3 content strategist Soumen Datta told On-Chain Media. 

As of this writing, there has been a significant ETF exposure whetting the risk appetite of investors and bolstering the demand for bitcoin as an asset.

Options Traders' Optimism

With Bitcoin trending upwards, some options traders are betting high on Bitcoin with predictions of a potential price increase of $75,000 in the months ahead.  

Despite Bitcoin’s notorious volatility, many investors are beginning to gravitate towards the recently approved Bitcoin ETFs,  shining a spotlight on its long-term potential as an investment vehicle like gold. 

Wall Street Investors

A growing number of Wall Street investors are doubling down on the Bitcoin ETF led by a conviction that it is a flight to safety and quality. 

In a recent interview with CNBC, MicroStrategy’s CEO Micheal Saylor said that his company is rebranding to a Bitcoin development company, underscoring his commitment to Bitcoin as an investment asset.