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Bitcoin nears $100k: Exploring its market value and growing dominance
As the Bitcoin price topped $99,000 on November 22, setting a new all-time high, we look at how many bitcoins exist, their share in the global currency supply and what drives up their value.
🪙At $99k per coin, Bitcoin's market cap is approaching $2 trillion – a significant figure but still a small portion of the estimated global currency supply of over $150 trillion. This total includes fiat currencies – like dollars, euros and yen – central bank reserves, and near-money assets like savings deposits and money market funds.
🪙Bitcoin’s share remains small but growing, driven by its use as a store of value and a hedge against inflation.
🪙Its price is influenced by factors like supply and demand, market trends, adoption rates, macroeconomic conditions and regulatory changes. Limited supply and rising demand drive it higher.
🪙Bitcoin, the world's biggest cryptocurrency has a 56% market share among the top ten cryptocurrencies.
Where is Bitcoin heading? 🪙Prices on Coinbase, the largest US crypto exchange, are outstripping the Tether (USDT) stablecoin pair on exchanges Binance and Bybit.
🪙Bitcoin has more than doubled in value from this year’s low of $38,505. It soared by about 45% after Donald Trump's election victory on Nov. 5.
🪙Investors foresee favorable crypto regulation under Trump, as he pledged to make the US the "crypto capital of the planet" and build a “national bitcoin stockpile.”
🪙The crypto got a boost after the US Securities and Exchange Commission approved the first 11 Bitcoin spot ETFs in January, allowing trading on traditional market exchanges rather than cryptocurrency exchanges.
🪙Over $4 billion has flooded into US-listed bitcoin exchange-traded funds since the election.
🪙Reports that Trump Media is in talks to buy crypto trading firm Bakkt also fueled the surge.
🪙The US government is one of the world’s biggest holders of bitcoin, with reportedly over 210,000 units worth around $14 billion seized by fraud officers.
What is Bitcoin, and how much of it exists? Bitcoin is a decentralized digital currency created in 2009 by the shadowy figure known as ‘Satoshi Nakamoto’. It is traded peer-to-peer, enabling payments without banks. ‘Miners’ use powerful computers earn bitcoins by processing the crypto’s ‘blockchain’ accounting.
🪙There are now around 19.8 million bitcoins in circulation.
🪙The US holds the most bitcoins, driven by institutional adoption and mining. Other key holders include China and Germany.
🪙The total supply of bitcoin was permanently capped at 21 million BTC by its creator.
🪙Once Bitcoin reaches its supply limit, no new coins will be issued. Miners will earn transaction fees instead.
🪙Bitcoin is expected to reach that limit around the year 2140.
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