Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
The total market value of cryptocurrencies has exceeded $ 1 trillion for the first time on Thursday amid a frantic and volatile rally in Bitcoin to another record.
Cryptocurrencies have reached the benchmark after a fivefold increase in market value in the last year, according to data from the CoinGecko tracker. The strategies cited demand from speculative retailers, trend-setting quantum funds, wealthy investors and even institutions, among the reasons for the growth.
Bitcoin rose to 6% on Thursday to reach a high of $ 38,169 and more than quadrupled in the past year, according to a composite price compiled by Bloomberg. It accounts for about two-thirds of the market value of cryptocurrencies, followed by Ether at about 13 percent, according to CoinGecko data.
Digital currencies are jumping into a world full of fiscal and monetary incentives, even though some commentators fear an inevitable bust and others question the basics. integrity of cryptographic markets. Proponents of Bitcoin claim that it offers coverage against the weakness of the dollar and the risk of faster inflation, a bit like gold, while critics criticize the intellectual soundness of comparing the two assets.
“The more people perceive that their assets, especially their liquid assets, such as fiat currencies, are eroding in value, the more they will look for alternatives,” said Geoffrey Morphy, president of the Canadian mining encryption company. Bitfarms Ltd.
Active Bitcoin accounts are approaching their all-time highs since the end of 2017, according to researcher Flipside Crypto – possibly a sign that some holders intend to sell. Less than 2% of accounts hold 95% of the Bitcoin offering, so a few large transactions can have an impact on prices. The last big Bitcoin boom started to implode at the end of 2017.
Some traders have indicated long-term JPMorgan Chase & Co. The $ 146,000 Bitcoin price forecast could fuel the rally. Others said sentiment was spurred by a US regulatory update that allows a less volatile currency class to be used by banks for payments.
– With the assistance of Lynn Thomasson and Eric Lam
(Updates with market movements.)