It reached $70,000 in November 2021 after a tumultuous 2023 in which it drifted away from all-time highs. Bitcoin started 2024 strong and the current valuation marks more than $51,000, allowing the market cap to exceed one trillion dollars once again; this multiplies the current value by the number of coins, which now stands at approximately 19.6 million.
This milestone has reinforced renewed optimism in the crypto community, which sees this recovery as the beginning of a new era with the next one just around the corner. halveIt is expected for April 2024 of this year.
Regulations, pre-halve and inflation
The psychological barrier of trillion dollars also allows Bitcoin ranking tenth in global assets in terms of market capitalizationAfter Meta and more importantly Berkshire Hathaway, who had a spectacular comeback year.
It’s not a fair comparison anyway, beyond satisfying a simple curiosity.
As soon as possiblehalve This is no small problem: In all the previous ones, the value rose sharply the following year; This is something that gives encouragement to those counting on a strong increase in the coming months. Of course, no one can guarantee this.
This is new meeting the rise came from his hand Increased institutional adoption and clearer regulation than in previous years This provides confidence to investors. “Ending the wild west of crypto,” as some European parliamentarians described it, for example, with the ratification of MiCA in the European Union a few months ago.
The growth of the DeFi (decentralized finance) ecosystem has also helped strengthen the credibility of cryptocurrencies among investors who increasingly see DeFi as an alternative to traditional finance. Bitcoin plays a fundamental role on these platforms as a collateral asset and a medium of exchange on these platforms.
And if anything has changed since the last one halveIn the spring of 2020, there were changes in interest rates and an increase in inflation in both the USA and the Eurozone. Economic uncertainty and the need to protect savings against inflation The search for safe haven values To prevent accumulated capital from losing value.
Although Bitcoin is not unanimously seen as one of them due to its high volatility, it is widely accepted as an interesting target for at least some of the wealth.
Now that it has once again become part of the financial agenda with its new rise above $50,000, perhaps we will see increased interest in including it in investment portfolios and fundamental speculations, as in 2017 or 2021.
Featured image | via Xataka Midjourney
in Xataka | US approves Bitcoin ETFs. In the case of gold, the value of the metal has quadrupled
Source: Xataka
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.