Bitcoin has reached a market capitalization of US$1 trillion for the first time in over two years.
The leading cryptocurrency’s current market cap is larger than the US$856.81 billion market value of Berkshire Hathaway, the eighth-largest company in the world.
Bitcoin resumed its rally on Valentine’s Day, rebounding from yesterday’s dip caused by the release of U.S. January inflation data that came in hotter than expected.
The world’s first blockchain-based crypto rose nearly 7% over the last 24 hours as part of a 20% weekly surge to trade at US$51,733 at noon ET, according to CoinGecko data.
Bitcoin’s returned to US$1 trillion a little over a month after the U.S. Securities and Exchange Commission approved 11 spot Bitcoin exchange-traded funds, opening a new avenue for investors to trade the cryptocurrency.
U.S. Bitcoin ETFs, which allow investors to trade shares of Bitcoin on the stock market of the world’s largest economy, hit US$4 billion in net inflows yesterday, including the largest daily inflow of US$651 million, according to data shared by CoinShares.
Bitcoin investors are now eyeing the quadrennial halving as the next crucial event for the network which cuts miner rewards to 3.125 Bitcoins per block from the current 6.25 Bitcoins, hence slowing Bitcoin inflows into the economy. A block is produced every 10 minutes in the Bitcoin blockchain.
Bitcoin’s halving event occurs every 210,000 blocks or approximately every four years.