Following the release of Bitcoin’s price surpassing $51,000, the total market value of Bitcoin in circulation exceeded one trillion dollars. This milestone achievement comes as the current circulating supply of Bitcoin stands at 19,627,443 BTC, representing 93.46% of its hard-capped total supply of 21 million Bitcoins. The surge in Bitcoin’s value reflects the positive investor sentiment fueled by a consistent bullish market and endorsements from Bitcoin Exchange Traded Funds (ETFs) in the United States, among other factors. These developments are mirrored across various aspects of the cryptocurrency ecosystem.
Bitcoin investments, both from individual and institutional levels, have recently contributed to the coin’s sustained price increase. Previously, in November 2021, Bitcoin had achieved a trillion-dollar market value milestone during a bullish phase that propelled its price to an all-time high of $69,000. This period also saw an expansion of the bullish trend across the cryptocurrency ecosystem, marking the first time the total crypto market value reached three trillion dollars. The upcoming Bitcoin halving is anticipated to play a crucial role in further escalating Bitcoin’s market price. According to a Grayscale analysis, Bitcoin ETFs could fundamentally alter the supply-demand ratio of digital currencies and balance the selling pressure from the halving.
Grayscale’s analysis highlights that the current mining rate of 6.25 Bitcoin per block amounts to approximately $14 billion annually at a price of $43,000. To maintain current prices, a similar magnitude of buying pressure is required. Post-halving, this requirement is expected to halve, with only 3.125 Bitcoin mined per block, effectively reducing the annual selling pressure to $7 billion. This adjustment directly impacts the operational costs of the mining community, with the forthcoming halving event set to reduce mining rewards to 3.125 BTC, necessitating a high market value for Bitcoin to ensure the sustainability of mining as a business model.
