Bitcoin price hit $ 55,000 per coin a few hours ago – and with a circulating supply of more than 18.6 million BTC that brings the total market capitalization of the first cryptocurrency to $ 1 trillion. But what does this incredible milestone mean for the leading cryptocurrency?
It has only been a few months since Bitcoin’s market capitalization caught up with VISA and Mastercard and other major banks. Weeks ago it surpassed Tesla’s market cap shortly after the company announced that it had also bought BTC to add to its corporate reserves.
Now BTC has set another important milestone: it has exceeded a total market capitalization of over USD 1 trillion.
Bitcoin’s asset and network are valued at a total of one trillion dollars. The achievement is nothing short of amazing. Everyone who saw this result coming will now be rewarded with a piece of this massive cake.
What’s even more impressive is the fact that the total value of Crypto Code rose to ten times that value from just $ 100 billion on Black Thursday almost a year ago. And that while most other assets have struggled for continued growth.
The stock market has stagnated lately and gold is in a downtrend as the capital instead flows into Bitcoin ( platform comparison ). Now that Bitcoin has reached a market capitalization of $ 1 trillion, BTC will begin to demand a place in the portfolios of every investor worldwide. Here’s why.
With a market capitalization of less than $ 100 billion, Bitcoin never had the liquidity necessary to get noticed by companies or institutions. Market cap has always been viewed as “tiny” compared to stocks and gold, but that’s no longer the case at $ 1 trillion.
$ 1 trillion is essentially a key asset – not necessarily for individual investors, but it could be the “all-clear” sign for more companies to dive into the already scarce and trending cryptocurrency.
Most evidence suggests that Bitcoin has not yet reached the point of „mania“, but after surpassing its $ 1 trillion market cap, the FOMO could gain momentum as higher-net-worth investors realize they could be stuck if they always pay higher prices when they enter.
While Bitcoin is overheating by most standards ( can Bitcoin crash? ), Reaching $ 1 trillion could actually reduce the risk in the eyes of institutions, which now have the liquidity to fall back on if and when they need it .