Key Points
- Bitcoin’s market capitalization has reached a new all-time high.
- The surge is attributed to the approval of spot exchange-traded funds in the US.
The market capitalization of the leading cryptocurrency, Bitcoin has set a new record in terms of US dollars.
Bitcoin’s Market Cap Hits New High
The previous high for Bitcoin’s market cap was in November 2021, when it reached approximately $1.302 trillion. It then dropped to around $297.309 billion a year later, in November 2022, before climbing to new peaks today.
The market cap of Bitcoin reached $1.303 trillion as prices hit $66,405 at 14:57 UTC. At this time, there were 19,644,481 bitcoins in circulation.
Understanding Market Capitalization
The market capitalization of a cryptocurrency is calculated by multiplying the total number of coins or tokens in circulation by the current price of a single coin or token. As a result, Bitcoin’s market cap tends to grow faster than its price, due to the continuous mining of new coins.
The recent rise in Bitcoin’s price is largely attributed to the approval of spot exchange-traded funds in the United States, which have seen significant inflows to date. Since the beginning of the year, Bitcoin’s total market capitalization has grown by over 135%.
