Cryptocurrency Market Value Tops $1 Trillion as Bitcoin Breaches $37,000

Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year.

Share on Facebook Tweet Snapchat Share Reddit Comment
Cryptocurrency Market Value Tops $1 Trillion as Bitcoin Breaches $37,000

Proponents of Bitcoin argue it offers a hedge against dollar weakness and the risk of faster inflation

Highlights
  • Active Bitcoin accounts are nearing all-time high levels of late 2017
  • Fewer than 2 percent of accounts hold 95 percent of Bitcoin supply
  • The last big Bitcoin boom began imploding in late 2017

The total market value of cryptocurrencies surpassed $1 trillion (roughly Rs. 73,12,050 crores) for the first time Thursday amid a frenzied and volatile rally in Bitcoin to yet another record.

Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year, data from tracker CoinGecko shows. Strategists have cited demand from speculative retail traders, trend-following quant funds, the rich and even institutional investors as among the reasons for the surge.

Bitcoin rose as much as 4 percent on Thursday to top $37,000 (roughly Rs. 27 lakhs) and has more than quadrupled in the past year, according to a composite of prices compiled by Bloomberg. It accounts for about two-thirds of cryptocurrency market value, followed by Ether on about 14 percent. Ether is up 62 percent so far this year.

Digital coins are jumping in a world awash with fiscal and monetary stimulus, even as some commentators fear an inevitable bust and others question the basic integrity of crypto markets. Proponents of Bitcoin argue it offers a hedge against dollar weakness and the risk of faster inflation, a bit like gold, while critics decry the intellectual soundness of comparing the two assets.

Active Bitcoin accounts are nearing their all-time high levels of late 2017, according to researcher Flipside Crypto - possibly a sign that some holders are planning to sell. Fewer than 2 percent of accounts hold 95 percent of Bitcoin supply, so a few big trades can impact prices. The last big Bitcoin boom began imploding in late 2017.

Some traders pointed to JPMorgan Chase's long-term Bitcoin price forecast of $1,46,000 (roughly Rs. 1 crore) as possibly fueling the rally. Others said sentiment was boosted by a US regulatory update that allows a class of less volatile coins to be used by banks for payments.

- With assistance from Lynn Thomasson.
© 2021 Bloomberg LP


What will be the most exciting tech launch of 2021? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Bitcoin
Samsung Brings Neo QLED TVs, MicroLED TVs to Expand Its Smart TV Portfolio in 2021

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com