Bitcoin market cap exceeds $1 trillion, hits $52,000

Bitcoin resoundingly recaptured its trillion-dollar market capitalisation on Wednesday, hitting $52,040 – its highest level since March 2022 – as a new source of demand emerged from US spot crypto exchange-traded funds (ETFs).

The aggregate value invested in Bitcoin returned above $1 trillion for the first time since the FTX debacle, reaching $1.017 trillion according to data provider Coingecko.

Fueling the flagship cryptocurrency’s resurgence are sizeable inflows into long-awaited spot bitcoin ETFs, investment vehicles that removed the need to directly hold the notoriously volatile digital asset. Over $1.64 billion flowed into these products in the week to Wednesday alone as investors rushed to access this new gateway to the cryptoverse.

Read More News:
Gold extends losses as inflation data cools Fed rate cut hopes

After struggling through 2022’s tightening monetary conditions and high-profile industry failures, bitcoin’s revival has seen it already notch its best month since October – just over halfway through February. Yet with macro headwinds persisting in the form of a possible US recession, the sustainability of this return to form remains an open question.