Fueled by consumers’ rising interest in cryptocurrencies and institutional buyers, bitcoin has touched an all-time high value of a whopping $64,000 on Wednesday, ahead of Coinbase’s IPO debut.
Data from Coinmarketcap.com shows that an unprecedented rally of Bitcoin value has propelled its market cap over a whopping $1.2 trillion.
What makes the achievement more significant is the duration it has taken to touch $1 trillion market cap. Bitcoin’s outstanding performance made the cryptocurrency taking far lesser time than other mainstream financial assets to hit the $1 trillion milestone.
According to a study conducted by CryptoParrot, Bitcoin, the world’s most popular cryptocurrency, was able to reach this record peak in the span of mere 12 years only, while other large-cap U.S tech companies took way longer.
Microsoft was 3.6x slower than BTC, as it took close to 44 years to get to $1 trillion. The Cupertino-based tech giant Apple took 42 years to achieve the same milestone while the U.S e-commerce behemoth Amazon Inc took 24 years and Alphabet-owned Google took 21 years.
CryptoParrot’s report further highlights that even though the technology stocks have surged to a big extent from last year, none of them was able to match or outperform bitcoin’s growth trajectory. Thus, it is very much possible that in the near future, BTC’s market cap will surpass that of other mainstream assets as well, given it has already sped past that of Tesla.
Another research report by Glassnode, a blockchain data provider, said that bitcoin has held the $1 trillion market cap for more than a week. Therefore, it displays a strong vote of confidence for bitcoin and the entire cryptocurrency asset class as a whole.
It is important to note that bitcoin, at the beginning of 2021, had a more modest market cap of only $500 billion, but from thereon, it went to gain another $500 billion.
So, which were the key events that contributed to BTC’s viral growth?
- Both Elon Musk and Jack Dorsey made sizable investments in bitcoin via Tesla and Square. Tesla’s 1.5 billion bitcoin investment is pegged to have reaped the company bigger profits than what it earned from its entire business in 2020.
- Canadian government regulators approved multiple bitcoin-focused exchange-traded funds, aka ETF. Several ETFs were launched on the Toronto Stock Exchange, aka TSX. For many years, the Grayscale Bitcoin Trust (GBT) was the only investment vehicle accessible to investors.
- Last but not least, major payment processors such as MasterCard and Visa, along with Bank of New York Mellon, made announcements about making it easier for their customers to use cryptocurrencies for making purchases.
The skyrocketing value of Bitcoin has boosted the confidence of investors as well as traders despite possible backslash it may face in some of the largest markets. India, one of the largest markets, is reportedly levying a heavy tax on Bitcoin exchanges and trading as well. Few either countries are also closely monitoring the market conditions before making their final move.
It now remains to be seen how further and at what speed bitcoin’s market cap grows from here onward. We will keep you updated. Until then, stay tuned.