Bitcoin, the world’s first cryptocurrency, reached a new all-time high price of US$69,324 (S$93,095) on March 5, 2024, surpassing its previous high of US$68,990 (S$92,641) set on Nov. 10, 2021. The price gained 5% in the previous 24 hours and reached the new milestone at around 10:45 pm Singapore time on Tuesday. However, the price fell by 5.6% in the next two hours after reaching the new high, finding support at US$65,431 (S$87,870), and continued to decline further to US$64,336 (S$86,393).
Despite the decline in price, Bitcoin’s market capitalization reached a new record of US$1.32 trillion (S$1.77 trillion) by March 4, surpassing its previous peak in November 2021 of approximately US$1.3 trillion. This new all-time high market cap was achieved when Bitcoin hit US$67,000 (S$89,974), while the November 2021 bitcoin market cap was achieved when the price hit about US$68,990 (S$92,641). The increase in market cap even with a lower price is possible due to the ongoing mining and addition of new coins.
The calculation of market capitalization in cryptocurrency is determined by multiplying the total circulating supply by the current price of a single unit. Since the beginning of the year, Bitcoin’s total market capitalization has witnessed an increase of more than 135 per cent, rising from around US$297.3 billion (S$399.2 billion) in November 2022, which was the lowest market cap Bitcoin has had.
The new all-time high price and market capitalization of Bitcoin reflect the growing acceptance and adoption of cryptocurrencies as a legitimate asset class. As institutional investors and corporations continue to invest in Bitcoin, its price and market capitalization are likely to continue to rise, making it a significant player in the global financial market. However, investors should also be aware of the volatility and risks associated with investing in cryptocurrencies and should do their due diligence before making any investment decisions.