Bitcoin breaks new records: Market capitalization exceeds $2,1 trillion for the first time

Bitcoin breaks new records: Market capitalization exceeds $2,1 trillion for the first time

Bitcoin has set a new all-time high, surpassing $2,1 trillion in market capitalization.

The leading cryptocurrency has reached a historic milestone by surpassing $2,1 trillion in market capitalization for the first time, cementing itself as the world's most valuable digital asset and reaffirming its leadership in the blockchain ecosystem. 

This new record coincides with a significant rebound in its price, which on May 18 was trading above $107.000, approaching its all-time high (ATH). 

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Bitcoin's price recovery comes amid a global context where the easing of trade tensions between the United States and China, along with positive macroeconomic signals, have renewed investor appetite for risky assets and decentralized technologies. Furthermore, growing institutional adoption and interest from large investors reinforce confidence in Bitcoin as a solid long-term store of value.

Bitcoin breaks barriers and surpasses Google among the world's most valuable assets

Bitcoin's recent surge has pushed its market capitalization past $2,1 trillion, a level that places it among the top 6 most valuable assets globally, above large companies like Google. This achievement reflects not only the rise in the cryptocurrency's price, but also a consolidation of its role in modern financial markets. 

Global capitalization of Bitcoin and the world's top assets.
Global capitalization of Bitcoin and the world's top assets.
Source: Companies MarketCap

In recent months, Bitcoin has experienced a remarkable recovery, rising nearly 40% from its April lows of around $75.000 to surpassing $107.000 in May. This rally has been accompanied by an increase in on-chain activity, with a higher number of active addresses and transaction volume, indicating sustained interest from both retail and institutional investors. 

Confidence in Bitcoin is also reflected in the accumulation of large holders, known as "whales," who have increased their reserves since March of this year, anticipating a possible continuation of the upward trend.

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What factors drive the crypto market?

One of the key drivers behind Bitcoin's recent surge has been the improving global economic climate and the easing of trade tensions between the United States and China. The agreement to temporarily reduce tariffs between the two world powers has renewed investor confidence in risky assets, including cryptocurrencies. 

In addition, the US Federal Reserve has kept interest rates stable, which has contributed to a more favorable financial environment for investment in alternative assets such as Bitcoin. This context has encouraged the entry of capital from traditional markets, such as sovereign bonds and gold, into the crypto market, seeking coverage against inflation and the depreciation of fiat currencies. 

At the same time, pro-cryptocurrency policies from governments and regulators, especially in the United States, have improved perceptions of the sector, facilitating institutional adoption of cryptocurrencies and attracting billions in net investment flows.

The importance of the 2024 halving

A fundamental technical factor that has influenced the price of Bitcoin is the latest halving, an event that reduces the reward for mining new blocks by half and that occurred in April 2024. This mechanism, programmed into the Bitcoin protocol, limits the issuance of new coins, generating scarcity and upward pressure on the price in the long term

One year after the halving, Bitcoin has accumulated a revaluation of more than 50%, even in a challenging global environment, demonstrating the strength of its fundamentals. 

Bitcoin market capitalization.
Bitcoin market capitalization.
Source: CoinGecko
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The optimism of the crypto community 

The outlook for Bitcoin in 2025 is shown optimistic, with analysts projecting a price range between $150.000 and $200.000 in the coming months, driven by the combination of favorable technical, macroeconomic and regulatory fundamentals. 

The continued influx of institutional capital, along with the development of more mature and secure financial infrastructures, strengthens Bitcoin's position as an alternative store of value in the face of the volatility of traditional markets. However, challenges such as volatility and the need for clear regulation still persist. Despite this, the current trend indicates a Bitcoin's consolidation as a global asset with growing liquidity and acceptance, which could redefine the way money is understood and used in these times.

In conclusion, Bitcoin has reached a new all-time high, surpassing $2,1 trillion in market capitalization, proving once again that it is a key asset in the digital economy.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts..