Cryptocurrency no. 1 of the world reached a record high on Friday, propelling it to a market value of over 1 trillion dollars for the first time.
One bitcoin BTCUSD
reached a record US $ 53,910.44, based on prices tracked by CoinDesk, bringing its total market capitalization to $ 1,002,547,798,785, according to research firm CoinMarketCap.com.
through CoinMarketCap.com
Bitcoin rose 4% on Friday to about $ 53,734, and has risen more than 85% since early 2021. By comparison, GC00 gold prices,
against which bitcoin often competes for investment dollars, they have fallen by almost 6% so far this year.
Meanwhile, the S&P 500 SPX index
looks at a gain of up to 4.5% year, Dow Jones Industrial Average DJIA
is up 3.3% and the Nasdaq COMP Composite Index
looks at a gain so far in the year of over 8%.
“The $ 1 trillion Bitcoin price is the most interesting news this year,” Naeem Aslam, chief market analyst at AvaTrade, wrote in an e-mail note. “This has been going on for a long time and the fact is that we are only 10 X away from overturning the gold market cap on our heads,” he said.
The rise of the digital asset created just 12 years ago by a person or persons known as Satoshi Nakamoto has been attributed to the growing institutional interest in bitcoin and other cryptographically supported alternative assets.
The fervor for bitcoins received a new spark earlier this month, when Tesla Inc. Elon Musk’s TSLA
said it acquired $ 1.5 billion in bitcoin in January and could accept the world’s number one digital asset for payment in the future.
Late Thursday, Musk, in a tweet, went on to explain his reason for the bitcoin exposure, describing the decision as “simply a less stupid form of liquidity than cash is risky enough for an S & P500 company.” .
Other institutions, including PayPal Holdings Inc. PYPL, which in November opened its cryptocurrency platform to all US customers after a smaller launch, has contributed to the sharp rise in bitcoin prices in recent weeks and months.
Several Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, have embraced bitcoin. Renowned investor Bill Miller, founder of Miller Value Partners, in a letter to customers earlier this month, posted on the company’s website, reaffirmed his optimistic outlook on bitcoin.
A noteworthy point is that, despite the parabolic movement of bitcoins in recent times, its dominance, its share of market value compared to other alternative digital assets, is about 60%, down from a recent peak of about 70 % at the beginning of the year.
This may suggest that other crypts, such as Ether ETHUSD
on the blockchain ethereum, also attract strong interest among buyers, along with bitcoin.