The market capitalization of Bitcoin surpassed $1.013 trillion, reaching a 25-month high, primarily driven by the approval of Bitcoin (BTC) ETFs in the U.S. market.

The total value invested in Bitcoin surpassed $1 trillion on Wednesday for the first time since November 2021, supported by inflows from exchange-traded funds (ETFs) trading the spot cryptocurrency in the U.S. The value of the world’s most famous cryptocurrency reached $52,079 on Wednesday, marking its highest level in nearly 25 months.

Since the beginning of February 2024, Bitcoin’s value has risen by nearly 22%, marking its most significant monthly increase since October.

Effects of Bitcoin ETFs on the market

Large inflows from new Bitcoin ETFs listed in the U.S. have been vital in reaching these new market capitalization levels. For example, in the five sessions before Wednesday, there were inflows of about $409 million to the products above, which have had approval to list and be on the market since the middle of last month.

According to market analysts, next week will likely see new inflow numbers exceeding $409 million.

Grayscale Bitcoin ETF share sales

On Wednesday, a U.S. court in New York City granted bankrupt crypto lender Genesis Global Capital permission to sell approximately $1.6 billion worth of Bitcoin ETF shares from Grayscale Investments’ spot Bitcoin ETF to pay its creditors.

However, the sale of Bitcoin ETF shares by Genesis Global Capital could be a notable event for the market once the settlement is finalized, potentially halting the current momentum of Bitcoin prices. The sales may halt the current momentum bitcoin prices have in the market.

As of now, Bitcoin investments constitute over half of the overall $2.01 trillion cryptocurrency market.

Halving is another key to Bitcoin’s growth

Meanwhile, bitcoin’s so-called halving, scheduled for April, may curb the supply of the most famous digital asset, an event many estimate to support prices based on historical precedent.

Bitcoin has tripled in value since early 2023 amid a price recovery following its price plunge in 2022. Estimates in the options market point to traders targeting prices beyond the record high of nearly US$69,000 reached in November 2021.

Bitcoin Whale Accumulation and Price Predictions

To add more mystery to the Bitcoin rally, the past two weeks have seen a strong market rally by BTC whales. According to market analysis, the whales have gained a staggering 140,000 Bitcoins worth more than $6.3 billion in just about three weeks.

As the cryptocurrency market continues to grow and consolidate, the factors driving Bitcoin’s rise depend on both economic indicators and investor perception, which will shape the evolution of digital assets in the coming months.