The total market value of Bitcoin's circulating supply has surpassed the $1 trillion mark as the price of the world's largest cryptocurrency exceeded $51,000.

As it stands, the current circulating supply of Bitcoin is 19,627,443 BTC, making up 93.46% of its total supply, which is capped at 21 million.

The effect of positive investor sentiment, driven by the bull market and approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission, amongst other factors, is being felt across the sector.

The rise in individual and institutional Bitcoin investments also helped the number one crypto to see sustainable price appreciation.

Bitcoin previously hit a $1 trillion market cap in November 2021, when the bull run at the time led to BTC reaching its record high of $69,000.

The bull run was felt across the crypto ecosystem, which recorded a combined market cap of $3 trillion in crypto, Cointelegraph reports.

In addition, the forthcoming Bitcoin halving event, which is set to take place in April, is forecast to play a crucial role in hiking Bitcoin's market price.

According to findings by Grayscale, Bitcoin ETFs can profoundly change the crypto's demand-supply ratio, thereby offsetting the halving's sell pressure.

Indeed, the analysis shows that the current mining rate of 6.25 Bitcoin per block equates to around an annual $14 billion, assuming the price is at $43,000. As such, in order to maintain current prices, $14 billion of buy pressure is needed over the same time.

"Post-halving, these requirements will decrease by half: with only 3.125 Bitcoin mined per block, that equates to a decrease to $7 billion annually, effectively easing the sell pressure," according to Grayscale.

The operational expenses of the mining sector are closely tied to Bitcoin's price. With the impending halving event reducing the mining reward to 3.125 BTC, sustaining a profitable mining operation hinges on Bitcoin maintaining a substantial market value.