Bitcoin surpasses the $1 trillion market cap milestone amidst a surge in U.S. ETF investments, reaching a 25-month high and signaling renewed investor confidence in the cryptocurrency market’s resilience.
15 February 2024 – Bitcoin’s total market value surged past $1 trillion on Wednesday, marking a significant milestone not seen since November 2021, fueled by continuous inflows into U.S. spot bitcoin exchange-traded funds (ETFs). With bitcoin hitting a 25-month high at $52,079 and its market cap reaching $1.013 trillion, the cryptocurrency has witnessed a remarkable 22% surge since the beginning of February, making it poised for its most substantial monthly rise since October.
The surge in bitcoin’s value has been largely attributed to strong inflows into new U.S.-listed ETFs, with data from LSEG Lipper showing capital flows into 11 U.S. spot bitcoin ETFs reaching $1.64 billion in the week leading up to Wednesday. Analysts suggest that this influx of investments has been a driving force behind the recent price action, with further price rises anticipated if the trend continues. Additionally, bankrupt crypto lender Genesis Global Capital received approval from a U.S. court to sell approximately $1.6 billion worth of shares in Grayscale Investments’ spot bitcoin ETF (GBTC.P) to repay creditors.Bitcoin’s resurgence comes amid a broader uptick in the cryptocurrency market, with the total value of investments in bitcoin accounting for over half of the $2.01 trillion parked in the overall cryptocurrency market, including tokens like ether. Shares of U.S.-listed cryptocurrency companies also witnessed gains, with Coinbase climbing 13.5%, and miners Riot Platforms and CleanSpark gaining 12.2% and 11.3%, respectively. Ether, the second-largest token by market cap, also saw a surge, reaching $2,762, its highest level since May 2022. – ref: Reuters
