On 14 February 2024, Bitcoin passed the $1tn market cap threshold for the first time since 2021. This bold performance is thanks to the investment influx generated by the spot bitcoin ETFs, which the SEC approved in January 2024.
Bitcoin ETF investments push the cryptocurrency over the $1tn value line
At one stage, the Bitcoin price reached $52,328.53, the highest in over two years. This 5.56% increase took the virtual currency’s market cap to $1,026tn. Reuters indicated that, since the start of this month, the Bitcoin price rose by 22%.
LSEG Lipper data shows recent capital inflows of $1.64bn into the US spot Bitcoin ETFs attributed to these price increases. Reuters quoted a crypto liquidity provider analyst:
Whether this pace will be sustained remains to be seen but in crypto, price often drives flow. One has to imagine that if there are more days like the last few, large inflows will be met by further price rises.
Bitcoin’s highest market cap ever was back in November 2021, when the digital token achieved a value of $1.28tn. The cryptocurrency’s all-time highest price was also back in November 2021, when one bitcoin sold for $69,000. Reportedly, the overall gross cryptocurrency market has a value of $2.01tn.
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US-listed cryptocurrency companies also saw an increase in their respective share prices on Wednesday. According to Reuters, Coinbase gained 13.5%, Riot Platforms 12.2%, and CleanSpark 11.3%. It seems that virtual currencies are climbing out of the hole dug by crypto failures, of which the FTX fraud scandal topped the charts.
