New Record: Bitcoin’s Market Capitalization Exceeds $1 Trillion
In a gigantic leap, the Bitcoin market capitalization has breached the $1 trillion psychological barrier for the first time in its short history. Data on Feb 19 reveals that once the BTC/USD price broke $53.3k, BTC valuation rocketed above $1 trillion.
The Bitcoin price is now steady above $54.3k.
BTC/USD Parabolic Price Expansion
Over the last eight months, the parabolic rise of Bitcoin has been nothing short of impressive and a spectacular feat to watch.
For instance, in the last two weeks, the Bitcoin price has been on an absolute tear, defying gravity and breaking above the $50k level for the first time in 2021.
The coin’s market price has more than doubled after breaching 2017 highs of $2019.
Bitcoin’s Superior Deflationary Features
Behind this near-perpendicular surge are a mix of several fundamentals. First, more investment firms, public companies, and billionaires endorse the cryptocurrency.
Most cite the network’s censorship-resistant property and fixed supply. In total, there will be 21 million coins to ever circulate.
Out of this, over 80 percent are in circulation. Miners will retrieve the last coin in 2034.
However, before then, the network has a deflationary feature where roughly after every four years–or 210k blocks, it automatically slashes block rewards by half.
From early May 2020, block rewards fell from 12.5 to 6.25 BTC. Considering the more than tripling of BTC prices from early May 2020, most miners are in, nonetheless, in blue.
Inflation Fears from Accommodative Monetary Policies and Trillions in Stimulus Package
Amid this, central banks across the world say their respective economies require support from the government.
Subsequently, their loose monetary policies, record-low interest rates, and stimulus packages, especially in the United States, is fanning inflation concerns.
Although Jerome Powell, the U.S. Federal Reserve chair, has dismissed inflation fears, a significant portion of U.S. public companies are not taking chances.
In H2 2020, Square said allocated $50 million of its cash reserves to Bitcoin as a cushion against possible consumer price expansion.
Tesla recently invested $1.5 billion into Bitcoin to diversify their revenue streams. They may also accept payment in BTC.
As BTCManager reports, Anthony Scaramucci, the co-founder of SkyBridge Capital, projects the BTC/USD price to reach $100k by the end of 2021.