HomeCryptocurrencyBitcoin Surges Above $64,000 as Cryptocurrency Market Hits $2.5 Trillion Milestone

Bitcoin Surges Above $64,000 as Cryptocurrency Market Hits $2.5 Trillion Milestone

In a monumental milestone for the cryptocurrency world, the combined market value of cryptocurrencies has crossed the $2.5 trillion mark. This surge in value has been primarily driven by Bitcoin, the pioneering cryptocurrency, which has seen its market capitalization soar to a staggering $1.25 trillion. Bitcoin’s price has experienced a remarkable rally, increasing by over 50% since the beginning of the year.

The latest surge in Bitcoin’s price saw it surpass the $64,000 level on Monday morning in Asia, coming within 7% of its all-time high set in November 2021. At the time of reporting, Bitcoin was trading at around $63,600, registering a 2.78% increase in the past 24 hours. This surge follows Bitcoin’s historic breach of the $63,000 threshold on March 1, marking its highest level since December 2021.

While Bitcoin dominates the headlines, other major cryptocurrencies also witnessed notable movements. Ethereum, the second-largest cryptocurrency by market cap, experienced a 1.5% increase, reaching $3,476.97. Solana, Tether, and XRP displayed mixed movements, with Solana easing by 0.83% to $129.03, Tether rising by 0.02% to $1, and XRP gaining 0.57% to $0.639.

The recent surge in cryptocurrency values has been attributed to several factors, including the approval and launch of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year. These ETFs have attracted significant investments, injecting fresh capital into the cryptocurrency market and reigniting excitement among investors.

According to data from LSEG, the ten largest spot Bitcoin ETFs collectively amassed $420 million in inflows on February 27 alone, marking the highest influx in almost two weeks. Additionally, anticipation surrounding the upcoming Bitcoin halving event scheduled for April has contributed to the bullish sentiment. Bitcoin halving, which occurs every four years, involves a reduction in the rate at which new tokens are released, as well as decreased rewards for miners. This event further underscores the scarcity of Bitcoin, as the total supply is capped at 21 million, with approximately 19 million already in circulation.

Following the halving event, the number of new bitcoins mined daily is expected to decline from 900 to 450. Notably, the introduction of nine new spot ETFs has led to the accumulation of over 300,000 bitcoins, equivalent to seven times the number of new coins mined since January 11.

CoinGecko, a leading cryptocurrency platform, reported that the total value of all bitcoins in circulation surpassed $2 trillion earlier this month, marking a significant milestone for the cryptocurrency market. This surge in value underscores the growing acceptance and adoption of cryptocurrencies as viable assets in the global financial landscape. As the cryptocurrency market continues to evolve, investors are closely monitoring developments to capitalize on the opportunities presented by this burgeoning asset class.

Monika Shanmugam