Bitcoin (BTC) approaches $52k, surpasses Tesla (TSLA) with $1T market cap

Bitcoin (BTC) has experienced a remarkable surge, surpassing the $51,000 mark and inching closer to the $52,000 milestone. The cryptocurrency market is witnessing a resurgence, with Bitcoin leading the charge in this recent upward movement.

As of the latest update, Bitcoin’s price stood slightly above $51,611, reflecting a 5.32% increase over the past 24 hours.

Bitcoin price chart

Bitcoin’s rally tied to inflows into ETFs

This surge in Bitcoin’s price is closely linked to significant net inflows into Bitcoin Exchange-Traded Funds (ETFs). Recently, Bitcoin ETFs recorded a substantial milestone, with cumulative net inflows exceeding $4 billion.

On Tuesday alone, these funds saw the highest single-day net inflow of $631 million, marking a resounding success for this investment product. Notably, IBIT emerged as the best-performing ETF, attracting $493 million in net inflows, followed by FBTC with $164 million.

Investors and analysts are closely monitoring the impact of these inflows on Bitcoin’s price dynamics. Renowned crypto analyst Ted Talks Macro suggests a correlation between net inflows and Bitcoin’s price movement, estimating that for every $1 billion in net inflows, Bitcoin’s price increases by approximately $2,900.

To give an idea as to just what impact net inflows from spot Bitcoin ETFs are having on this market, here's some quick and rough math based on current net flow numbers 👇

I'm using numbers since February 5th (by this time, grayscale outflows had truly flatlined and this helps… pic.twitter.com/muXekTF2Hy

— ted (@tedtalksmacro) February 14, 2024

This trend showcases the growing influence of ETFs in shaping the cryptocurrency market, specifically the Bitcoin market.

Bitcoin (BTC) market cap surpasses that of Tesla (TSLA)

Following the sudden surge in BTC price, the Bitcoin market capitalization has surpassed the $1 trillion mark for the first time since December 2021, placing Bitcoin in a league of its own, surpassing the market cap of notable giants like Tesla (TSLA), Walmart (WMT), and Berkshire Hathaway Inc. (BRK-B).

The current market cap of Bitcoin is $1,015,544,703,688 compared to the current Telsa market cap of $576.62 billion. This solidifies Bitcoin’s position not only as a formidable digital asset but as a leading financial instrument.

This achievement underlines Bitcoin’s growing prominence in the financial landscape and its resilience as a decentralized digital currency. The market cap comparison with Tesla, a leading electric vehicle (EV) company, is particularly noteworthy, signalling a shift in investor sentiment towards digital assets.

Tesla’s stock, listed on NASDAQ under the ticker symbol TSLA, closed at $184.02. The electric vehicle company, once considered a market heavyweight, finds itself eclipsed by Bitcoin in terms of overall market valuation.

BTC price outlook as the Bitcoin halving event nears

Looking ahead, Bitcoin’s pre-halving rally could potentially peak between $54,000 and $58,000, according to Michaël van de Poppe, the founder of MN Trading Consultancy.

#Bitcoin breaking through $51,000 and making a new yearly high.

Mentioned earlier that there's more strength in the markets than I expected.

Probably we'll see $54-58K pre-halving as a potential peak. #Ethereum remains strong and is the one to follow. pic.twitter.com/uL5Nh2Tfu3

— Michaël van de Poppe (@CryptoMichNL) February 14, 2024

The anticipation of the upcoming Bitcoin halving event and the continuous influx of capital into ETFs contribute to the positive outlook for Bitcoin’s price trajectory.

While the current net inflows into Bitcoin ETFs showcase strong investor interest, analysts caution that such high levels may not be sustainable indefinitely. The market dynamics remain dynamic, and the relationship between ETF flows and Bitcoin’s price is subject to change.

The post Bitcoin (BTC) approaches $52k, surpasses Tesla (TSLA) with $1T market cap appeared first on Invezz