In recent news, the total investment in bitcoin has exceeded $1 trillion, marking a return to November 2021 levels. This surge can be attributed to the continued support from inflows to US spot bitcoin exchange traded funds, driving up the price of bitcoin to a 25-month high of $51,694. This has pushed the token’s market cap to over $1 trillion, according to Coingecko.
This current market cap is just shy of the all-time high of $1.28 trillion reached in November 2021. In fact, bitcoin has seen a remarkable rise of 20% since the start of February, making this its biggest monthly gain since October.
Bitcoin investments currently make up more than half of the $2.01 trillion invested in the overall cryptocurrency market, which includes other digital coins such as ether. In addition, the launch of new US-listed ETFs has contributed to the recent price surge, with 11 spot bitcoin ETFs seeing a total of $1.64 billion in inflows in the week leading up to Wednesday, according to LSEG Lipper data. This trend has continued in the past five trading sessions, with an influx of $409 million into these products.
Experts believe that this price-driven flow of investments will continue, with B2C2 analysts stating that “if there are more days like the last few, large inflows will be met by further price rises for spot (bitcoin).”
It is worth noting that bitcoin has previously hit an all-time high of $69,000 in November 2021. However, it faced challenges throughout 2022 and the first half of 2023 due to global central bank tightening and failures at major crypto companies, including leading exchange FTX.
In other cryptocurrency news, the second-largest token, ether, which is the backbone of the ethereum network, has also seen a surge in price. It is currently up 4.6% at $2,760, its highest since May 2022.
This information was reported by Alun John in London and Medha Singh in Bengaluru, with editing by Chizu Nomiyama.
