Market capitalization (market cap) is a measure of the total value of all outstanding shares of a company's stock or, in this case, a cryptocurrency like Bitcoin.
Here's how to calculate Bitcoin's market capitalization:
Formula
Market Capitalization = Total Circulating Supply × Current Price
Example
Using the current numbers:
Total Circulating Supply = 19,822,081 BTC
Current Price = $96,093.23 USD
Market Capitalization = 19,822,081 BTC × $96,093.23 USD/BTC
= $1.903 trillion USD
In simpler terms, Bitcoin's market capitalization represents the total value of all Bitcoins in existence, assuming each coin is sold at the current market price.