Despite its price drop to nearly USD 51,000, Bitcoin maintained its market capitalization above USD 1 trillion. Willy Woo reiterated that the reduction in the supply of the pioneering cryptocurrency implies a new bullish momentum.
The market for Bitcoin and other cryptocurrencies was very moved in the last week. In this period, Coinbase finally made its entry into Wall Street and cryptocurrencies, in general, reached a new all-time high. Furthermore, the Bitcoin hash rate fell in China’s Xinjiang province, leading to a 14% decline in price.
The long-awaited listing of Coinbase on Nasdaq has finally happened and the exchange is now trading through the COIN stock. Its initial price was USD 400, which then fell and stabilized around USD 340. Among the most prominent investments on the exchange is that of ARK Invest, which bought 750,000 shares of Coinbase. That amount is currently equivalent to around USD 255 million.
Coinbase’s entry into Nasdaq helped both Bitcoin and Ether set new all-time highs. The bullish momentum spread to the entire cryptocurrency market, which exceeded 2 trillion in market capitalization. Additionally, Bitcoin’s dominance dropped from 70% at the beginning of the year to around 54.44%.
After the drop in its price due to the steep decline in hash rate, the pioneering cryptocurrency experienced a recovery. It went from a low of USD 51,500 to above USD 56,000 at the close of the day. Although it was close to USD 51,000, Bitcoin kept its market capitalization above USD 1 trillion.
Bitcoin Supply Reduction Is a Bullish Sign
Bitcoin maintains its fundamental parameters despite the recent drop in its price. Renowned analyst Willy Woo reiterated that the reduction in the supply of the first cryptocurrency in the market continues. This implies that Bitcoin is on the verge of new bullish momentum, according to Woo.
Woo considers miners to be above the point of profitability, which allows them to accumulate Bitcoin. Of course, this contributes to a reduction in its supply.
Bitcoin Is First To Reach USD 1 Trillion Market Capitalization
Michael Saylor, CEO of MicroStrategy and Bitcoin evangelist in the corporate world, forwarded a tweet from @DocumentingBTC. This user explains how many years it took MAGA companies (Microsoft, Apple, Google, and Amazon) to reach a USD 1 trillion market capitalization.
Apple was the first, managing to inaugurate the club of trillion-dollar companies after 42 years. It took Microsoft two more years, from its founding, to exceed USD 1 trillion. Amazon and Google, more agile in the digital world, required half the time of their predecessors.
For its part, Bitcoin recently entered the exclusive group of trillion-dollar “companies”, just 12 years after its birth. H.G. Wells may have the explanation for this feat as he said that “any sufficiently advanced technology is indistinguishable from magic.”
Major Banks Continue to Support Bitcoin
America’s largest investment banks keep sending messages of support for Bitcoin. This could have repercussions among the investors that constitute their respective customers.
For example, J.P. Morgan sees a promising future in the Bitcoin derivatives market. Its returns in futures and options are five times the annual returns of the fiat currency market, according to a study by that bank. Goldman Sachs even rates Bitcoin as a relevant asset for the future of global financial systems.
By Alexander Salazar
