An increase in interest and activity has Bitcoin reaching new heights
Bitcoin’s market value among its circulating supply exceeded the $1 trillion market after its price surged beyond $51,000. The current distributed Bitcoin supply is 19,627,443 BTC, or 93.46% of its total, which has a hard cap of 21 million.
The effect of rising favorable investor opinion, a sustained bull market, and spot Bitcoin exchange-traded fund (ETF) approvals in the US are being reflected across the other elements of the ecosystem. Growth in individual and institutional Bitcoin investments has benefited Bitcoin’s recent sustained price increase.
Bitcoin previously attained a $1 trillion market cap in November 2021 during a bull run where the price reached an all-time high of $69,000. This extended throughout the entire crypto ecosystem, which saw its market capitalization go over $3 trillion for the first time.
An upcoming Bitcoin halving is anticipated to be a critical factor in increasing Bitcoin’s price. A Grayscale analysis indicates that Bitcoin ETFs can alter the cryptocurrency’s supply-demand ratio, which will offset the halving’s pressure to sell.
The Grayscale research emphasizes that the present mining rate of 6.25 Bitcoin per block totals about $14 billion annually at a price of $43,000. This means that to sustain current prices, $14 billion worth of buy pressure is needed over the same period.
“Post-halving, these requirements will decrease by half: with only 3.125 Bitcoin mined per block, that equates to a decrease to $7 billion annually, effectively easing the sell pressure.”
Bitcoin’s price has a direct impact on mining operating costs. The halving will also reduce the mining reward by half to 3.125 BTC, meaning BTC must maintain a high market value to support mining as a legitimate business model.
