Bitcoin briefly surpassed a $1 trillion market cap on Tuesday after its price surged above $54,000. That represented a 7% gain from the previous day.
Bitcoin previously exceeded a $1 trillion market on February 19. The leading cryptocurrency market cap held that figure for a few days before falling below the mark.
Although Bitcoin is sitting off of its all-time-high of $58,332.36, it has seen a huge rally in the past year. BTC is up over 80% this year and 570% higher over the last 12 months.
Its rally can be attributed to an increase in institutional interest and notable purchases from major corporations. Such as Tesla, Square and MicroStrategy.
Chinese appmaker Meitu was the latest to invest in Bitcoin and also purchased some Ether. At press time, Ether was trading at $1,836.73, up 7% from the previous day.
There was more good news as Norway’s Aker ASA became the first Scandinavian company to move into space. With the 180-year old oil multinationals establishing a new unit dedicated to investing in Bitcoin and blockchain technology.
Many traders liken Bitcoin to “digital gold,” a hedge against inflation and potential “safe-haven” asset. Where investors can park their money in times of political or economic turmoil.
With a third stimulus bill set to be signed by U.S. President Joe Biden, the dollar is going to take a hit in value. Payments of $1,400 will be distributed to millions of Americans.
This usually correlates with a rise in the Bitcoin price, as seen when the first two stimulus packages came into law. Analysts expect a similar outcome this time around as well.
Bitcoin could pass Amazon in market capitalization
After surpassing the $1 trillion market cap, Bitcoin could have its sights on even bigger gains. According to Mike McGlone, BTC could eventually pass Amazon.
Amazon’s current market cap sits at $1.51 trillion, so Bitcoin still has a way to go before approaching that figure.