Crypto Market Cap Touches $2T
According to market trackers, CoinGecko and Blockfolio, the cryptocurrency market capitalization reached an all-time high of $2 trillion on Monday, as gains from the past few months drew demand from both institutional and retail investors.
The crypto rally was led by Bitcoin, which set a record by remaining at a market value of $1 trillion for a week. According to analysts, Bitcoin can sustain its $1 trillion market value as long as it remains over $53,000. The fact that Bitcoin held its $1 trillion market cap for one week is impressive and shows the growing confidence in Bitcoin and cryptocurrencies.
Tesla bought $1.5 billion worth of Bitcoin and made it an accepted form of payment. PayPal made it possible for merchants to accept payment in Bitcoin. Visa made it possible to pay with Bitcoin on their platforms. More companies are starting to become involved with Bitcoin, fueling its rally.
Bitcoin isn’t the only digital currency that has been rallying. Ethereum, the second-largest cryptocurrency by market cap, had a market capitalization of $244 billion on Monday. Ethereum has skyrocketed over 180% this year, and Bitcoin has risen over 100% — outperforming traditional assets like stocks and commodities.
Paolo Ardoinio, chief technology officer at crypto exchange Bitfinex, said, “Momentum and interest have begun to expand beyond Bitcoin and Ethereum… As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and coinciding with that, a surge of interest around other alternative assets… as they become more market-ready.”
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.