Bitcoin Tops $37,000, Crypto Market Cap Value Over $1T
07 Jan 2021 · 3rd Party Analysis
- Bitcoin goes from strength to strength
- Institutional investors increasingly interested in the coin
The cryptocurrency market valuation crosses the $1 trillion mark, the highest crypto market cap in history. Previously, during the first cryptocurrency rally in early 2018, the overall valuation of the crypto market reached a high of $835 billion. This time, as the market is progressing even more swiftly, the crucial $1 trillion mark was eclipsed late Wednesday.
Along with the overall growth of the market, Bitcoin made a new high, surpassing the $37,000 mark. The number one cryptocurrency is still holding near its highest levels during the early trading hours of the European market session on Thursday. The surpassing of the $37,000 per Bitcoin was a result of a 4% climb on Wednesday and comes after a 400% gain in the past year.
The $1 trillion milestones for all cryptocurrencies, currently 8,200, was hit after the market saw a fivefold increase in value in the past year. Traders and investors credit the rapid growth not so much to retail traders and individuals, but to a wave of institutional investors and funds that are pouring money into the volatile market as a way to diversify their portfolio and participate in the early stages of the development of the crypto asset class.
Bitcoin now holds a 68% share of the total crypto market cap, boasting a valuation of $686 billion, zeroing in on Tesla, the EV company led by Elon Musk, which saw a record-shattering year and has a market valuation of $716 billion. Bitcoin is now bigger by valuation than Alibaba Group Holding, valued at $615 billion, and Warren Buffett’s Berkshire Hathaway, valued at $540 billion.
High-Profile Endorsements for Bitcoin
The world’s apex cryptocurrency was recently supported by JPMorgan Chase & Co when the bank announced that Bitcoin has the potential to reach $146,000 in the long-term and could essentially become a strong competitor to gold as an asset class. As JPMorgan sees more growth for Bitcoin, more institutions and professional investors are joining the bullish camp and have started allocating funds into Bitcoin or are considering the idea. Bitcoin supporters favor the cryptocurrency as in their view, it offers a hedge against inflation, while the opposing view warns that participants are creating a bubble.
On Monday, the number one digital asset registered a drop of 17%, its biggest one-day slide since the March turmoil. The decline followed a breach of the $34,000 milestone for the first time over the weekend. Bitcoin was quick to erase the losses from Monday and is now trading in its third consecutive day of gains, reaching a couple of hundred dollars shy of the $38,000 milestone.
The second-biggest cryptocurrency by valuation, Ethereum, surpassed $1,100 on Wednesday and reached a market cap of $135 billion. Ethereum is up over 60% from Sunday, Jan 2 to Thursday, Jan 7. For the same period, Bitcoin marks an increase of slightly over 27%. XRP, which faces serious challenges in a lawsuit by the US Securities and Exchange Commission, had enjoyed some gains for the trailing 7-day period, posting gains of 36%. Late in December, the SEC filed a lawsuit against Ripple, the company behind XRP, accusing it of conducting a $1.3 billion unregistered securities offering.