Bitcoin (BTC) Market Cap Surges to $1.25T as VanEck Anticipates Bull Market Will Persist

Bitcoin has outpaced nearly every major asset class in the past year, delivering a stellar 124% increase in spot prices since September 2023

Bitcoin outperformed nearly every major asset class over the past year, with a stellar 124% increase in spot prices since September 2023, a report by asset manager VanEck revealed on Sept. 19.

Despite a recent market pullback that left some investors on edge, Bitcoin’s market capitalization surged to around $1.25 trillion, now claiming 56% of the total cryptocurrency market — a 15% increase from a year ago.

According to VanEck, Bitcoin’s extended bull market is expected to continue, driven by factors fundamentally different from those that fueled the cryptocurrency’s 2023 rally.

Bitcoin’s earlier retail-driven adoption, bolstered by the popularity of “inscriptions” — a feature that enabled users to store media files directly on the blockchain — has waned, contributing to a 52% year-over-year decline in transaction fees.

However, the asset manager highlighted Bitcoin’s 2024 price appreciation being more closely linked to its growing role as a store of value and a medium for transferring wealth. The introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year accelerated institutional adoption. According to Morningstar data, these ETFs now hold around $55 billion in net assets, with wealth advisers adopting the funds at an unprecedented rate.

“Bitcoin’s long-term growth is supported by enduring macro trends: increasing demand for decentralized, censorship-resistant networks, growing institutional participation, and rising sovereign involvement in mining and cross-border trade,” said Matthew Sigel, VanEck’s head of digital assets research.

Meanwhile, Bitcoin miners had a tough 2024, largely impacted by the Bitcoin halving event in April, which reduced the mining reward from 6.25 BTC to 3.125 BTC per block. Consequently, the Bitcoin Hashprice, a key industry profitability metric, dropped by 97% over the past year, severely affecting mining operations.

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