Bitcoin is back in the big leagues! The total value of all circulating Bitcoin crossed the $1 trillion mark after its price climbed above $51,000. This achievement follows a sustained bull run fueled by factors like growing investor confidence, spot Bitcoin ETFs in the US, and rising individual and institutional investment.
This isn’t the first time Bitcoin has reached this milestone. It briefly touched $1 trillion in November 2021 during a bull run that saw its price hit an all-time high of nearly $69,000. Back then, the entire crypto market reached a combined value of $3 trillion.
What’s next? The upcoming halving event, which cuts Bitcoin’s mining rewards in half, is expected to further impact its price. Analysts at Grayscale believe Bitcoin ETFs could help balance this halving-related sell pressure by fundamentally changing the demand-supply dynamics.
Currently, miners earn 6.25 Bitcoin per block, equivalent to roughly $14 billion annually. To maintain current prices, this level of buying pressure is needed. However, post-halving, the mining reward drops to 3.125 Bitcoin per block, effectively halving the annual sell pressure to $7 billion.
Bitcoin’s price also directly affects mining costs. The halving will require Bitcoin to maintain a high market value for mining to remain a profitable business.
Overall, Bitcoin’s $1 trillion milestone is a significant achievement, and the future looks bright with the upcoming halving and evolving market dynamics.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.