The total market value of Bitcoin’s (BTC) circulating supply crossed $1 trillion after the BTC price surged above $51,000. The current circulating supply of Bitcoin is 19,627,443 BTC, i.e. 93.46% of its total supply, which is hard capped at 21 million.
The impact of rising positive investor sentiment — fueled by a sustained bull market and spot Bitcoin exchange-traded fund (ETF) approvals in the United States, among others — is being reflected across the other aspects of the ecosystem.
The spike in Bitcoin investments at both individual and institutional levels aided Bitcoin to witness sustainable price appreciation
Previously, Bitcoin recorded a $1 trillion market cap milestone in November 2021, during a bull run that eventually catapulted BTC to its momentary all-time high of $69,000. Parallelly, the bull run extended across the crypto ecosystem and, for the first time, recorded a combined market capitalization of $3 trillion in crypto.
The upcoming Bitcoin halving is expected to play a key role in further increasing the market price of Bitcoin. According to a Grayscale analysis, Bitcoin ETFs can fundamentally change the cryptocurrency’s demand-supply ratio, counterbalancing the halving’s sell pressure.
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Grayscale’s analysis points out that the current mining rate of 6.25 Bitcoin per block amounts to approximately $14 billion annually — considering the price at $43,000. In other words, to maintain current prices, $14 billion worth of buy pressure is required 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 directly impacts the operational costs of the mining community. The upcoming halving event will cut the mining reward in half to 3.125 BTC, which will require BTC to maintain a high market value to make mining a viable business model.
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