Bitcoin (BTC) Market Cap Smashes $1 Trillion
Just 12 years since its inception, the Bitcoin market cap smashed through the $1 trillion mark earlier today, February 19, 2021.
A Bitcoin (BTC) price of around $55,500 was the benchmark price every Bitcoiner was waiting for, and the price continued to rise setting a new all-time high of $56,445 and a market cap of over $1.05 trillion.
Surpassing the trillion dollar-mark, Bitcoin breached yet another significant milestone, and in doing so becomes the sixth most valuable asset in the world, and of course a much more interesting investment to the bigger money classes.
Not even two weeks have past since Bitcoin overtook the Tesla market cap, ironically helped by Tesla’s $1.5 billion Bitcoin investment.
And according to data analysis firm Asset Dash, the Bitcoin market cap is now almost $300 billion bigger than Tesla’s, and has relegated Chinese giant Tencent to seventh place in its meteoric rise.
A Trillion Dollar Market Cap Opens Bitcoin Up To Bigger Investors
A trillion dollar market cap introduces a whole new investor class to Bitcoin, as the bigger names will now be showing closer interest in it. We are already seeing this with some of America’s biggest investment banks already gaining exposure to Bitcoin.
Last month, JP Morgan COO Daniel Pinto admitted the investment bank will have no choice but to get involved with Bitcoin ‘if it becomes a broadly-used asset class.’
Whereas, Goldman Sachs held a private forum with Galaxy Digital CEO Mike Novogratz and its employees and clients, last week.
The investment bank has even begun hiring more Bitcoin and digital currency experts for its human resources team, and recently issued guidance on the peaceful coexistence of Bitcoin and gold as macro hedges.
As well as Tesla investing in Bitcoin, MicroStrategy adopting Bitcoin as its primary treasury reserve asset has been ongoing.
CEO Michael Saylor announced a new convertible bond offering of $900 million, all of which will be immediately converted into USD and then into Bitcoin.
The bond offering was fulfilled yesterday, and the company raised $1.05 billion, at zero percent interest rates over five years.
This type of offering usually requires a 5-10% interest rate, so the fact that Michael Saylor can raise so much with zero percent interest rate shows institutional investor appetite for Bitcoin exposure is insatiable.
A Bitcoin ETF Next?
Bitcoin has slowly shaken off its “black market” image, unless you still read mainstream, IMF nonsense, and regulators at the US SEC will likely introduce a Bitcoin ETF, sooner rather than later.
At $1 trillion, Bitcoin has gained more respect among the bigger investor class and the regulators around the world.
Ark Invests CEO Cathie Wood said last month, the SEC wouldn’t consider a Bitcoin ETF until the market cap was $2 trillion.
That was in January when the Bitcoin was worth about $580 billion. Three weeks later, we now have a trillion dollar Bitcoin market cap, so we are well on our way.
Canada launched the world’s first Bitcoin ETF last week, and it was the largest traded ETF on the Toronto Stock Exchange (TSX) on its first day of trading.
This shows the demand is there, if anyone ever doubted it (Peter Schiff, Nouriel, Taleb…), and no doubt the US SEC will be looking up north and not wanting to lose too much ground.
With new SEC chairman and Gary Gensler ready to take the helm, we now have a younger, more dynamic thinker than his predecessor Jay Clayton. And more importantly someone who understands the power of Bitcoin and blockchain technology.
Trillion Dollar Bitcoin – A Highly Significant Milestone
The Bitcoin market cap surpassing a trillion dollars is a historic moment for Bitcoin. No doubt, anybody who truly understands Bitcoin has expected this moment, and many more trillion dollar milestones to come.
It’s a highly significant milestone for many reasons, and will usher in a whole new investor class.
Institutional money has already started pouring into Bitcoin. That’s the main driver from $10k to here. And the bigger Bitcoin gets, the bigger the investment it can absorb.
We are still in the early adoption phase, and as adoption grows, so will the Bitcoin market cap. They say the first is always the best. I’m sure we will find out this year if that’s true with trillion-dollar increments.
