Capitalization is the total market value of assets in a turnover. In case of cryptocurrency markets, digital coins are the assets. The capitalization of such an asset as Bitcoin is the total price of all virtual coins being in a turnover at the very moment. As a rule, this index is accounted in dollars.
The growing market value of the currency is the important factor for potential investors. It shows that the market is being developed, and cryptocurrency money become more popular and wanted in exchanges. The trading volume for some period is the equally important index for investments. The increasing interest in digital money is the proof for the fact that it is profitable. This means, people will give more for them tomorrow than they cost today, for example.
Bitcoin market capitalization is not a stable index. It can change depending on the market situation and different events directly connected with the currency. There is a set of key factors influencing this parameter directly, as well as the BTC rates. From the exchange rate viewpoint, the currency is volatile and able to bring both good and not so good “surprises” to investors.
The price of a cryptocurrency and its total market value depend on the following factors:
Bitcoin capitalization gets changed all the time. Several months back the index was twice as high compared to the today’s number. If the money value will go on dropping, the negative tendency will prevail and strengthen as well.
Since the moment it first appeared, Bitcoin had ridiculous prices. In 2009, they sold 5050 coins for only $5.02. At that time, you could buy 1309 coins for just 1 dollar. With time, the digital currency got more active development. In February 2011, BTC rates were equal to 1 dollar. Six months later they reached $10. The first rapid jump was in 2013 when the price raised to $32 first, and then to $75. In 2014, rates stayed within $700-900, later there was a slight drop, and then the rapid growth started since 2015. By the end of 2016, the BTC rate reached $1000.
The most remarkable year for bitcoins was 2017 when it had been sold for 19000-20000 dollars per coin and the total value reached $300 billion. 2018 was fateful for all cryptocurrencies. The bitcoin rates dropped to 13000 dollars and then to $3500 by the end of 2019.
In the beginning of the past year, the bitcoin exchange rate continued slight dropping. The cryptocurrency market went into the stage of global correction, and the price of 1 BTC was $300-3500. Since April, the situation got a “warmup” and the coin reached 8700-dollar mark in May and 11400 dollars by the end of summer.
According to the latest stat data, the bitcoin rate is $9145 and the “capitalization” index is at nearly 169.44 million dollars. One can check relevant data on CoinMarketCap, which is of the most popular services.
Discussions about the future of Bitcoin go on nowadays. Will it be able to become the world currency or just bust like a bubble? The history knows the case of a rapid total assed price drop in China after the government prohibited the use of coins. Then, the rate fell down from 81 000 to 50 000 dollars.
Still, one fact remains unchanged for today. As the maximum pool of BTC mining is 21 million coins, 80% of all Bitcoins were already mined for today. This means, the mining difficulty of the currency will only grow year after year. This will lead to its value increasing and cause positive impact on capitalization.