Bitcoin’s market capitalization could be on the verge of recovering to USD 1 trillion. Bitcoin investors seem confident that the corrective phase is over.
The price of Bitcoin recently recovered the psychological mark of USD 50,000, not seen since May 15th. That rally has driven more than 90% of the network’s coins above their purchase price. That could mean that less than 10% of the people investing in Bitcoin have suffered any losses.
After at least three months below that price, Bitcoin exceeded USD 50,000, managing to stay above that level for several hours.
The price of the pioneering cryptocurrency breaks the resistance between USD 30,000 and USD 40,000 after many weeks. That period was a consolidation range that served as the basis for investors’ accumulation. Additionally, that confirmed the strength of USD 30,000 as support due to the high demand for such cheap Bitcoin.
There has been an organic recovery in the price of Bitcoin after it bottomed out at USD 29,000 on July 20th. In just over a month, it has maintained steady growth with few and slight setbacks, reaching an increase of 50%.
Bitcoin Could Reach Market Capitalization Above USD 1 Trillion
That surge brings Bitcoin increasingly close to market capitalization above USD 1 trillion. That way, it would return to the select group of assets that include silver and companies like Facebook, Amazon, and Google. The last time it maintained such capitalization, BTC was trading above USD 54,000.
According to Glassnode, metrics on the Bitcoin chain show that 94.38% of UTXOs or Bitcoin outputs are in profit. In other words, there remains less than 6% for all the coins on the network to reach a higher price than they were when last transferred.
There is renewed market trust in Bitcoin’s upward trend, which the current price rally makes evident. Shortly after Bitcoin bottomed out at USD 29,000, its supply on exchanges fell sharply.
Investors’ Accumulation of Bitcoin Contributes to the Price Rise
That could mean that investors are confident that the price has completed its corrective phase. Besides, it may be wise for them to secure their Bitcoin holdings in personal wallets. In that way, they would reduce the liquid supply available for purchase.
The supply on exchanges is just a few percentage points above the levels in April. In that month, the price of the pioneering cryptocurrency reached its all-time high above USD 60,000.
Renowned analyst Willy Woo argues that all investors, from retailers to corporate treasuries, are accumulating BTC. That has contributed to deepening the reduction in supply with sustained demand.
Carlos Maslatón recently said that the price of Bitcoin would indirectly reach USD 1 million in the long term. Regarding the remainder of 2021, he believes that the cryptocurrency will be worth USD 95,000. He predicts that its market capitalization would be equal to all the physical US dollars existing in the world.
In the last weeks, Bitcoin has seen a rebound in its price. After trading around USD 28,000, the cryptocurrency regained ground and recovered to USD 50,000. Analysts have made bold predictions, many of which have been accurate, proving the strength of the first cryptocurrency on the market.
By Alexander Salazar
