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The price of bitcoin passed another major stage on Friday, as the market value of the cryptocurrency exceeded 1 trillion dollars, according to Coindesk.
Digital currency traded just under $ 54,000 per coin on Friday as it hit a new high and rose to $ 54,880 later in the session, according to Coin Metrics. The price of bitcoin has now gained about 350% in the last six months. Prior to the recent increase, the digital asset never traded above $ 20,000.
The movement was partially fueled by the increased adoption of cryptocurrency by large investors and companies. The oldest bank in the United States, the Bank of New York Mellon, announced earlier this month that it will move into space. Elon Musk’s Tesla converted some of its cash on its balance sheet to bitcoin earlier this year and said it would begin accepting digital chips as payment.
Bitcoin “has started to become so big that it is undoubtedly creating its own demand as companies and institutions begin to make inroads into an area they would not have touched on a few months earlier,” Jim said. Reid, Deutsche Bank’s research strategist. “Ironically, it’s turning into a credible asset class for many, gathering so late and also getting an increase in institutional participation.”
The market value is calculated by multiplying the bitcoin price by the number created. Although not a perfect comparison, the market value of 1 trillion dollars would make the value of bitcoin higher than all, except for a handful of global stocks. Tesla, for example, has a market capitalization of about $ 700 billion, while Apple is valued at over $ 2 trillion.
Pro-bitcoin investors and entrepreneurs celebrated the landmark on social networks.
“From white paper to $ 1 trillion. #Bitcoin eat live gold, “Cameron Winklevoss, Gemini, said on Twitter.
“RIP bears,” Morgan Creek Digital Assets co-founder Anthony Pompliano wrote on Twitter.
Certainly not everyone on Wall Street has been convinced of Bitcoin’s future prospects. Citadel Securities founder Ken Griffin said Friday he was not interested in cryptocurrencies, while researchers at JPMorgan said the bitcoin rally was unsustainable.