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The price of bitcoin has jumped this week, hitting the $ 58,000 level yesterday for the second time in its history. But, even more remarkable than this hefty price tag, this milestone has been eclipsed once again in its total market cap: $ 1 trillion.
Bitcoin’s market cap is the measure of the total value of its entire supply – the USD price of a single bitcoin multiplied by the total number of bitcoin in existence. With 18,651,861 BTC released and each bitcoin priced over $ 57,000 at the time of writing, according to Clark Moody Bitcoin, the total market cap is now over $ 1.06 trillion.
Market cap first crossed $ 1 trillion on February 19, according to CNBC, and bitcoin hit its all-time high of $ 58,355 on February 21, according to Clark Moody. The fact that it is hovering around that price point again a few weeks later could indicate that new all-time highs are on the horizon.
While the USD price of a single BTC is often the most eye-catching metric, bitcoin’s market cap can be more informative as a measure of network value. Market cap more directly represents the amount of bitcoin that has been mined from its total capped at 21 million. It can also be a useful way to compare bitcoin to other asset markets or other companies.
As the price of BTC and market capitalization continue to rise due to the asset’s most bullish price run in history, which has continued since March 2020, it becomes increasingly difficult to analyze the specific actions that determine the price during a given week. But this latest surge can be attributed to recent announcements of institutional exposure to bitcoin, an increase in corporate interest in bitcoin mining, progress in promoting a more friendly legislative environment for bitcoin businesses. or other recent titles.
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