Crypto Market Cap Vaults To $1.69 Trillion, Topping Australia, Spain’s GDP As Bitcoin ETF Mania Spreads

Loading… Loading…

The total cryptocurrency market capitalization rose to $1.69 trillion on Monday, reaching the highest valuation since May 2022. The surge in valuation comes amid escalating expectations for the landmark approval of a spot Bitcoin BTC/USD Exchange-Traded Fund (ETF), setting the stage for what could be a landmark year in the digital currency space.

A Surge in Value: The Crypto Markets Four-Month Rally

The past four months have witnessed a staggering increase in the value of the crypto market, climbing from $1 trillion in early September to the current $1.69 trillion.

The whole cryptocurrency industrys value has eclipsed the economic output of nations like Australia and Spain, which ended 2023 at $1.687 trillion and $1.582 trillion, according to International Monetary Fund (IMF) forecasts.

Chart: ChatGPT

Bitcoin has witnessed its market value surge, nearly doubling from around $500 billion to the current $920 billion, driving much of the broader crypto markets growth. The largest cryptocurrency now commands a 55% share of the total market cap, marking a significant rise from its 40% dominance just a year ago.

Meanwhile, Ethereum ETH/USD maintains its position as the second-ranked cryptocurrency but has experienced a marginal decline in market share, slipping from 20% in January 2023 to 17% at present.

Chart: Bitcoins Rising Dominance vs. Ethereums Shrinking Share

Institutional Adoption On Horizon: Analysts Predict ETF Approval

Geoff Kendrick and Suki Cooper, analysts at Standard Chartered, have hinted at a bullish future for Bitcoin, in their latest note shared to clients on Monday. Loading… Loading…

With the Securities and Exchange Commission (SEC) poised to greenlight spot ETFs for Bitcoin potentially within the week, this move is expected to catalyze a significant uptick in Bitcoins value.

Drawing parallels to the introduction of the first U.S.-based gold ETF in November 2004, which saw the price of gold multiply by over four times in the subsequent seven to eight years, Bitcoin is projected to enjoy similar gains.

Bitcoins Path To $100,000: A Timeline Accelerated By ETFs

The acceptance of a Bitcoin spot ETF is predicted to be a pivotal moment, accelerating Bitcoins adoption by institutional investors.

This could lead to considerable price surges, with Standard Chartereds experts suggesting that the BTC ETF market will mature more rapidly than that of gold, potentially propelling Bitcoin to the USD 100,000 mark by the end of 2024.

Should the ETF inflows align with predictions, an even more optimistic end-2025 forecast places Bitcoin near the $200,000 threshold, assuming that spot US ETFs will hold between 437,000 and 1.32 million new bitcoins, translating to about $50-$100 billion.

Read now: Bitcoin Blasts Back: ETF Approval Dreams Fuel Surge To $47K

Photo: ShutterstockLoading… Loading…