Market Capitalization

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Market capitalization is a measure of how much the total supply of an asset is worth. Market capitalization is calculated by multiplying the price per unit of the asset by the total number of units in circulation. For example, a company with 1,000,000 shares outstanding and a market price of $10 per share would have a market capitalization of $10,000,000.

Market capitalization is most often used to determine the value of a publicly traded company. However, Bitcoin markets cite this metric regularly as well. The Bitcoin market capitalization is the product of the price per bitcoin and the amount of bitcoin in existence.

Learn more about how new bitcoin are created.