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Bitcoin (BTC) hit a record high of over $ 53,700 and its market cap surpassed $ 1 trillion for the first time.
Bitcoin’s surge in late 2020 is an unprecedented wave of demand from institutional investors and millionaires, sparked by the purchase of $ 250 million worth of BTC by business intelligence firm MicroStrategy on August 11 last year. .
By the end of January 2021, MicroStrategy had invested $ 1,095 million, accumulating 0.38% of the circulating supply of 71,079 BTC or Bitcoin. In early February, the company hosted a webner that provided a strategy for incorporating Bitcoin into corporate reserves. MicroStrategy is currently in the process of raising $ 900 million to buy more BTC.
Grayscale, an asset management company for institutional investors, is actively accumulating Bitcoin in 2020. Bitcoin Trust has increased its assets under management by 872% from $ 1.8 billion at the beginning of the year to $ 17.5 billion in early January. To date, Grayscale is buying BTC at a faster rate than new mining supplies.
Bitcoin prices hit a record high of $ 43,000 on February 8 with the news that Tesla’s Elon Musk had bought $ 1.5 billion worth of BTC.
And the bullish news continues. There are rumors that Twitter will add Bitcoin to its balance sheet, and major banks such as BNY Mellon and Deutsche Bank have announced moves to introduce the BTC Custday service. BlackRock and Morgan Stanley are also beginning to consider investing in Bitcoin.
Bitcoin 2020
The $ 1 trillion milestone has been reached by Bitcoy’s violent price movements in the last 12 months.
In March 2020, as the threat of coronavirus infection mounted, the US government banned Europe from entering the United States on March 11, and the world was locked in.
As the panic spread, Bitcoin prices fell more than 50% on March 11 to less than $ 4,000 by March 13, prompting massive sell-offs across the leveraged exchange. At the time, it caused disturbances in the cryptocurrency market and legacy financial markets. On March 13, the market capitalization of Bitcoin fell below $ 100 billion for the first time since May 2019.
Despite the price drop, the bulls steadily raised prices in May 2020 in anticipation of Bitcoin’s third half-life. Well-known hedge fund manager Paul Tudor Jones revealed that he had invested in BTC as a means of covering inflation, and BTC rallied to $ 10,000 in May.
DeFi’s bull market and Ethereum expectations for ETH 2.0 in Q3 2020 have taken the spotlight from BTC, but much of the gains made from the DeFi boom appear to have returned to Bitcoin … BTC, which skyrocketed to $ 12,000 in late October, continued to rise after PayPal launched a cryptocurrency service in the United States.
BTC’s market capitalization surpassed $ 326.5 billion and its price surpassed $ 18,000, breaking a new record on November 18.
Since then, Bitcoin’s market capitalization has more than tripled in roughly three months, and BTC peaked in December and continued to rise.
Bitcoin took 12 years to grow from just a white paper to a $ 1 trillion decentralized network, and it is currently the world’s eighth largest asset by market capitalization.
By contrast, it took Microsoft’s market capitalization 45 years to exceed $ 1 trillion. Amazon took 27 years and Google took 22 years to reach $ 1 trillion.
The next question is how long it will take for Bitcoin to approach the market capitalization of gold.
