Bitcoin market value soars beyond $1 trillion amid buyers' rush

BTC's all time high market cap was $1.28 trillion which was registered in November 2021
The image shows an illustration of Bitcoin stacked on top of each other. — Pixabay

The image shows an illustration of Bitcoin stacked on top of each other. — Pixabay

Amid an unusually rising interest of investors, the total market value of Bitcoin (BTC) rose beyond $1 trillion for the first time since November 2021 when it hit its all-time high market cap of $1.28 trillion.

Bitcoin's rarely-reached market value bar of $1 trillion comes to be the highest in 25 months, with the skyrocketing inflows to US spot Bitcoin exchange traded funds (ETFs) backed cryptocurrency rates.

In the same manner, the price of the biggest cryptocurrency value crossed $52,079 on Wednesday, which is also its 25-month high. A day earlier, however, it was up 4.29% at $51,690, raising total market cap to $1.013 trillion, as per a price platform CoingeckoMeanwhile, the world's most-traded cryptocurrency has soared around 22% so far in this month only.

Read more: Bitcoin resurges to $50,000 mark after two years

According to Reuters, industry analysts, citing data from LSEG Lipper, attributed this unprecedented rise, observed in past few weeks, to uncommon inflows to new US listed ETFs, with the capital influx into the 11 US spot Bitcoin ETFs increased to $1.64 billion for the week ending Wednesday.

The total inflows of the last five trading session of BTC were recorded $409 million to the products that were approved and traded in Janaury.

Analysts at B2C2, a crypto liquidity provider, said, "Whether this pace will be sustained remains to be seen but in crypto, price often drives flow. One has to imagine that if there are more days like the last few, large inflows will be met by further price rises for spot (bitcoin)."

Investments in bitcoin make up more than half of the $2.01 trillion parked in the overall cryptocurrency market which includes ether and other digital coins.

The stocks of cryptocurrency companies listed in the US also saw an increase on Wednesday, with Coinbase rising by 13.5%, while mining companies Riot Platforms and CleanSpark increased by 12.2% and 11.3% respectively.

The second-largest cryptocurrency, ether, which supports the ethereum network, was last seen rising by 4.9% to $2,762, its highest level since May 2022.