Bitcoin Market Cap Surpasses $1 Trillion Amid Crypto Rally

Bitcoin Leads Cryptocurrency Surge as Market Capitalization Hits Milestone

Feb 14, 2024 - 12:05
Feb 14, 2024 - 12:05
Bitcoin Market Cap Surpasses $1 Trillion Amid Crypto Rally
Bitcoin Market Cap Surpasses $1 Trillion Amid Crypto Rally

Bitcoin has surged past the $52,000 mark, leading a broad rally across digital assets. This surge has propelled Bitcoin's market capitalization above $1 trillion for the first time since December 2021. CoinGecko data reveals a 22% year-to-date gain for Bitcoin, accompanied by a resurgence in Ether, the second-largest token, which has climbed back to levels seen before the collapse of TerraUSD nearly two years ago.

Despite the emergence of a higher-than-expected U.S. inflation rate reported on Tuesday, the momentum of the digital asset recovery remained intact. This resurgence gained further impetus with the recent approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). However, analysts caution that certain technical indicators suggest a potential temporary slowdown in the ongoing rally.

Tony Sycamore, a market analyst at IG Australia Pty, highlighted Bitcoin's "impressive resilience" in the face of fluctuations in risk sentiment. Nevertheless, some technical analyses point to a possible temporary decline to the high $30,000s.

Bitcoin reached a peak of $52,054 before settling around $51,800, while Ether hovered around $2,760.

The gradual climb of Ether to pre-TerraUSD levels contrasts with Bitcoin's rapid resurgence following the 2022 implosion. Notably, Do Kwon, the creator of TerraUSD, is presently in custody in Montenegro, facing extradition to South Korea or the U.S. on fraud charges.

Several sector-specific factors have buoyed Bitcoin, including the introduction of U.S. ETFs dedicated to the token, which have attracted a net inflow of $3.3 billion since January 11.

Moreover, anticipation surrounds the Bitcoin halving expected in April, which will reduce the supply of the largest digital asset, historically exerting a positive impact on prices.

Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, anticipates a brief market pause before the Bitcoin halving "takes over the narrative," following a remarkable four-month rally.

Bitcoin's remarkable surge, tripling since the beginning of last year, has sparked optimism in the options market, with traders setting their sights on prices surpassing the previous record of nearly $69,000 achieved in November 2021.

Also Read: Bitcoin Price Projection: ETF Inflows May Propel BTC to $112K This Year, Predicts CryptoQuant

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