Bitcoin has experienced significant growth in its realized capitalization, reaching a total of $850 billion thanks to increased institutional and sovereign entity involvement. Nation-states like Bhutan, El Salvador, and the US have engaged with Bitcoin, leading to its rise in prominence. Despite ongoing debates about its value and utility, Bitcoin has become one of the largest global assets with a market capitalization of $2 trillion. The cryptocurrency has also demonstrated its use as a decentralized payment network, processing billions of dollars in transactions. Bitcoin's dominance within the digital asset ecosystem has increased since the collapse of FTX in November 2022, and it has attracted a disproportionately larger share of new capital compared to altcoins. Institutional investors have shown a preference for Bitcoin due to its scarcity and protection against fiat currency debasement. However, new demand appears in bursts rather than sustained inflows, and retail participation has declined compared to the peak in 2021. The introduction of US spot Bitcoin ETFs has allowed institutional investors to gain exposure, contributing to over $40 billion in net inflows. Despite market pullbacks, the Bitcoin investor base has shown resilience, and the current cycle has seen controlled drawdowns and lower volatility. Overall, the Bitcoin market has become more stable with the involvement of mature players.



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