In a significant milestone, the fully diluted valuation of Bitcoin surpassed the trillion-dollar mark for the first time since November 2021, propelled by a surge in its price.
Bitcoin's price reached $47,035, driving its total market capitalization to $931.5 billion. The fully diluted valuation, which accounts for all Bitcoin that will ever be mined, stood at an impressive $996.9 billion.
The overall cryptocurrency market cap also experienced a notable increase, reaching $1.87 trillion, reflecting a 4.7% rise within the past day. Bitcoin dominance remained strong at 49.7%, with Ethereum accounting for 16.1% of the total crypto market.
Geoff Kendrick, the Head of Crypto Research at Standard Chartered, attributed the recent rally in Bitcoin to shifting dynamics in spot ETF flows. He highlighted the decline in cumulative flows into existing ETFs like GBTC, alongside the increasing inflows into other funds such as BlackRock's iShares Bitcoin Trust.
Kendrick pointed out that despite the slowdown in GBTC selling, other ETFs continued to witness robust inflows, averaging $244 million per day. This shift in flow dynamics has contributed to driving Bitcoin's price higher.
Looking ahead, Kendrick forecasted a net inflow into spot ETF funds ranging from $50 billion to $100 billion this year. He anticipates that GBTC outflows will eventually cease, while inflows into other funds will persist, potentially leading to Bitcoin reaching $100,000 by the end of 2024 and $200,000 by the end of 2025.
The latest surge in Bitcoin's valuation underscores its resilience and enduring appeal as a leading digital asset, with market observers closely monitoring its trajectory amid evolving market dynamics and investor sentiment.