Why Bitcoin's market cap just hit a new record high before the price did

Why Bitcoin's market cap just hit a new record high before the price did


The latest leg of Bitcoin’s (BTC) recent rally saw its market cap push above $330 billion for the first time ever as prices rallied above $17,750 late Nov. 17.

According to CoinGecko, Bitcoin’s previous record capitalization of $329.3 billion was posted on Dec. 16, 2017, amid the market’s all-time high price rally to test $20,000.

BTC market cap since 2017: CoinGecko

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However, the new record for capitalization comes despite the BTC price itself failing to break into new highs.

There’s a simple explanation for that for that — Bitcoin’s expanding supply. While roughly 16.746 million Bitcoin existed on Dec. 16, 2017, more than 1.8 million coins have since been mined, equating to a 10.75% expansion in supply. That means Bitcoin is able to have a higher market cap despite today’s lower BTC price.

The combined capitalization of all cryptocurrencies has also pushed above $500 billion dollars for the first time since February 2018.

Combined crypto asset capitalization since 2017:

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