Bitcoin has hit new all-time highs above $ 53,700who made their market capitalization exceeded a trillion dollars for the first time.
Bitcoin’s rally in late 2020 appeared to be triggered by an unprecedented wave of demand from institutions and billionaires. The trend was towards the world’s largest publicly traded business intelligence company. MicroStrategy, announced that he converted $ 250 million from his treasury to BTC on Aug. 11.
End of January 2021 MicroStrategy had invested $ 1.095 billion to accumulate 71,079 BTC, or 0.38% of the circulating bitcoin supply. In early February, the company hosted a free webinar that outlined strategies for incorporating Bitcoin into corporate and corporate treasury reserves MicroStrategy is currently in the process of raising an additional $ 900 million to buy more BTC.
The institutional asset manager, Grayscale also aggressively increased bitcoin accumulation in 2020and its Bitcoin Trust reported an 872% increase in assets under management from $ 1.8 billion at the beginning of the year to $ 17.5 billion in early January. Till date, Grayscale bought Bitcoin at a price faster than creating a new BTC offering.
February 8th the news that Elon Musk, CEO of Tesla, invested $ 1.5 billion, or 7.7% of the EV maker’s money, in BTCBitcoin price soared to new highs above $ 43,000.
And the bullish institutional news keep coming back Rumor has it that Twitter could be the next big company to add Bitcoin to its balance sheetand megabanks like BNY Mellon Y. Deutsche Bank announce steps to roll out BTC custody services. Large funds like BlackRock and Morgan Stanley are examining whether an investment in Bitcoin is warranted.
A milestone of $ 1 trillion comes after 12 months of extreme volatility for BitcoinBTC’s capitalization has increased more than tenfold since the “Black Thursday” collapse in March 2020.
Amid the growing threat of the coronavirus pandemic, the former President of the United States Donald Trump introduced a travel ban from Europe to the US on March 11and many nations around the world went into total lockdowns.
Growing panic sparked chaos in the crypto and legacy financial marketsSince the price of Bitcoin fell more than 50% on March 11 to less than $ 4,000 by March 13, Request for wholesale liquidations on leveraged exchange. On March 13, Bitcoin’s market cap was below $ 100 billion for the first time since May 2019.
Despite the carnage Opportunistic buyers have kept prices skyrocketing as they soar in anticipation of the third Bitcoin block reward halving in May 2020. BTC briefly reclaimed $ 10,000 in May after it became known that the renowned billionaire was a hedge fund manager Paul Tudor Jones had invested in BTC to hedge against inflation.
While the DeFi bull market in Q3 2020 and the excitement over Ethereum’s Eth.2 review would draw BTC’s attention, Much of the gains made by the DeFi boom seemed to be quickly finding its way into BitcoinAt the end of October, BTC was over $ 12,000. It tested its all-time highs since 2017 towards the end of November after PayPal launched crypto trading services in the US.
Due to its largest offer since 2017, Bitcoin posted a new record market cap on Nov. 18, with BTC’s cap topping $ 326.5 billion for the first time.The price rose over $ 18,000.
Since then, Bitcoin’s market capitalization has more than tripled in about three monthsWith BTC’s foray towards new all-time highs in December that will get the rally up to speed.
It took only 12 years for Bitcoin to grow from an obscure academic scientific document to a decentralized network of $ 1 trillion.This is the eighth tradable asset with a market capitalization of thirteen digits.
Vice versa, It took Microsoft 45 years for its capitalization to surpass a trillion dollars. It took Amazon 27 years, and Google hit the $ 1 trillion mark in just 22 years.
Now the question is: How long will it take for Bitcoin to approach gold’s market cap?