Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
Surpassed the total market value of cryptocurrencies $ 1 trillion for the first time Thursday amid a frenzied and volatile rally in Bitcoin to yet another record.
Cryptocurrencies hit the milestone after a fivefold increase in market value in the past year, data from tracker CoinGecko shows. Streets have cited demand from speculative retailers, trend-following quant funds, the wealthy and even institutional investors as one of the reasons for the rise.
Bitcoin surged a whopping 6% on Thursday to hit a high of $ 38,169 and has more than quadrupled in the past year, according to a Bloomberg curated price. It accounts for about two-thirds of the cryptocurrency’s market value, according to CoinGecko, followed by Ether at about 13%. data.
Digital currencies are leaping into a world awash with fiscal and monetary stimulus, even though some commentators fear an inevitable failure and others question the fundamental integrity of crypto markets. Proponents of Bitcoin argue that it provides a hedge against dollar weakness and the risk of faster inflation, a bit like gold, while critics disapprove of the intellectual soundness of comparing the two assets.
“The more people realize that their assets, especially their liquid assets, such as fiat currencies, are crumbling in value, the more they will look for alternatives,” said Geoffrey Morphy, president of the Canadian crypto mining company. Bitfarms Ltd.
Active Bitcoin accounts are approaching their all-time high in late 2017, according to researcher Flipside Crypto – possibly a sign that some holders are planning to to sell. Less than 2% of accounts own 95% of the Bitcoin supply, so a few large transactions can affect prices. The last major Bitcoin boom began to implode in late 2017.
Some traders pointed to JPMorgan Chase & Co.’s long run. Bitcoin price prediction of $ 146,000 as possible fuel for the rally. Others said sentiment was boosted by an update to US regulations allowing banks to use a class of less volatile coins for payments.
– Assisted by Lynn Thomasson and Eric Lam
(Updates with market movements.)