Bitcoin Breaks $1 Trillion Market Cap Barrier: Impact of Chinese New Year and Halving
Eugene Park Views
As the price of Bitcoin continues to rise, its market capitalization has surpassed 1 trillion dollars.
On the 14th (local time), CNBC reported that citing data from CoinMetrics, the price of Bitcoin increased by 4%, recording $51,789.58, and the market cap exceeded 1 trillion dollars for the first time since the end of 2021.
This is due to the increased demand for new Spot Bitcoin ETFs as the rate of fund outflows from the Grayscale Bitcoin Listed Index Fund (ETF) has slowed. In addition, the Chinese Lunar New Year also had an impact. Bloomberg reported that Bitcoin prices tend to surge during the Chinese New Year period.
The upcoming Bitcoin halving is also a factor in the sharp price increase. The Bitcoin halving occurs every four years, and the next halving is scheduled for April. Bitcoin prices have often hit record highs in years when halving occurs.
Cryptocurrency-related stocks also rose. Coinbase and MicroStrategy each grew by 14% and 12%, respectively. Iris Energy and CleanSpark rose by 20% and 12%, respectively. Marathon Digital surged by 14%.
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