On Wednesday, Bitcoin soared past the $52,000 mark, propelling its market cap beyond the $1 trillion milestone. This leap occurred in the wake of spot Bitcoin ETF approvals and in anticipation of the expected halving event in April.
The recent climb marks a major milestone, as Bitcoin’s market cap crossed the $1 trillion threshold for the first time since November 2021, according to Coin Market Cap.
Bitcoin Sees Dramatic Increase in Price Following ETF Approval
So far, the token’s price has increased by more than 20% in the last 30 days alone, while it’s up by more than 133% YoY, trading at $51,816 at press time.
We are witnessing the start of an institutional #Bitcoin bull run!
— Crypto Rover (@rovercrc) February 14, 2024
Part of this value boost likely stems from the SEC’s recent nod to several spot Bitcoin ETF applicants. Such a move broadens the cryptocurrency’s reach through conventional financial channels.
The cryptocurrency’s price steadily increased to over $45,000 in the lead-up to SEC approval before dipping back below $40,000 in what many attributed to being a “buy the rumor, sell the news” event.
Additionally, Bloomberg’s latest figures reveal nearly $3 billion in inflows to spot Bitcoin ETFs, highlighting substantial contributions to BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund, amassing $3.8 billion and $3.1 billion, respectively.
Impending April Halving’s Impact on Bitcoin Market Cap
In addition to the spot Bitcoin ETF approvals, the token’s long-awaited halving event due in April may drive the coin’s price even higher while diminishing rewards for miners following the completion of a block.
“Halving isn’t priced in. Nobody’s talking about it. It’s an even bigger driver of Bitcoin price than the ETF,” crypto analyst @beaniemaxi posted to X. “But now you got unprecedented demand coupled with an unprecedented supply cut. Miners are really the only economic sellers in this sort of market. And that’s cut in half.”
Ahead of the halving, Bitcoin miners are facing challenges, as recent findings indicate their earnings constituted a mere 10% of the daily inflow that spot Bitcoin ETFs secured earlier this week.
Anticipation of the halving could trigger another big rally for the cryptocurrency, mirroring the buildup to January’s spot Bitcoin ETF approval.
“Currently $45,900,000 worth of Bitcoin is mined every day,” crypto YouTuber CryptoRover posted to X. “After the halving (in 55 days) there will only be $22,950,000 produced every day. With such an inflow of $600m+, it means that there is literally 28 times more being bought than produced. Do you have any idea how bullish this is?”
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