Bitcoin briefly surpassed a fully diluted valuation of $1 trillion on Friday, as the price of the world‘s largest digital asset rose above $47,900 (as of midday today) for the first time since March 2022.
The price of bitcoin rose 4.5% this morning to $47,035 at 10:14 a.m. ET for a total market capitalization of $931.5 billion, according to The Block price page. The fully diluted valuation, which measures the value of all the bitcoins that will ever be mined, was $996.9 billion.
In this sense, the report maintains that the capitalization of the global cryptocurrency market now amounts to 1.87 trillion dollars, an increase of 4.7% in the last 24 hours. Bitcoin’s dominance is 49.7%, while ether accounts for 16.1% of the total crypto market.
Geoff Kendrick, head of cryptocurrency research at Standard Chartered, told The Block that bitcoin’s recent rally was due “to changing flow dynamics into new US ETFs.” He used a chart to illustrate how cumulative flows into new ETFs show GBTC is declining, but other funds, such as BlackRock’s iShares Bitcoin Trust, are seeing an increase.
The Block says that “GBTC sales appear to have slowed, averaging 59 million per day this week, while flows into the other ETFs continue to be strong, averaging 244 million per day this week. “This change is enough to push Bitcoin higher,” Kendrick added.
The Standard Chartered analyst predicts there will be a net inflow into spot ETF funds of between $50 billion and $100 billion this year.
“GBTC outflows will stop completely at some point and other inflows will continue, with a price of $100,000 for bitcoin by the end of 2024 and a price of $200,000 by the end of 2025,” the report added.
With the capitalization of the global cryptocurrency market now amounting to 1.87 trillion dollars, it seems the momentum for Bitcoin and other cryptocurrencies remains strong. As BTC flirts with a trillion-dollar valuation, speculative investors and cryptocurrency enthusiasts continue to closely monitor these developments.
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Chart courtesy of The Block pricing page. With information from The Block.