The price of Bitcoin (BTC) has reached a new all-time high of $53,670, pushing the coin’s total market capitalization above $1 trillion, according to crypto metrics platform CoinGecko.
Market capitalization is the total number of coins currently in circulation multiplied by their current market price—basically, the combined worth of all existing BTC.
By various estimations, the value of all money in the world is around $95 trillion—and now Bitcoin represents about 1% of that. While it’s not totally fair to compare Bitcoin to money (it can be seen as an asset instead), it provides one way to put it in perspective.
Speaking to Decrypt, Quantum Economics analyst Jason Deane noted that for people who were involved in the crypto space from its early days, the $1 trillion BTC market capitalization may have been a long time coming but it was inevitable.
“Make no mistake, this is an incredibly important milestone. It adds significant gravitas to the asset class and makes it increasingly difficult for its detractors to dismiss it as niche, experimental, or a passing fad. Bitcoin is coming of age!” Deane told Decrypt.
Kadan Stadelmann, CTO of blockchain solutions provider Komodo, added that the one trillion mark was an important psychological barrier, and breaching it is another sign of the crypto market’s maturity.
“It also makes Bitcoin the first global alternative asset to experience this kind of support and continues to set the stage for it as a global currency option which is completely agnostic of country and region,” Stadelmann told Decrypt.
According to him, as more people realize that Bitcoin represents “the hardest money that's ever existed, available to anyone and completely permissionless,” it’s reasonable to suggest that the world itself is starting to perceive a new way to transact value and “uninvent borders.”
As Decrypt reported, the total market capitalization of all cryptocurrencies first reached $1 trillion in early January. Since then, the ongoing price rally boosted Bitcoin’s and other cryptocurrencies’ prices to new heights.
Today, this figure surged to over $1.64 trillion, with Bitcoin’s market cap alone amounting to over 60% of it.