On Friday, Bitcoin, the original cryptocurrency, extended its latest leg of blistering rally, surpassing a market cap of $1 trillion for the first time on record while refuting analysts’ rancour that the world’s largest digital asset might be soaring as a weaker hedge against a downturn in global equity indices which seemingly had little rooms to ascend further.
On top of that, amid competing narratives on whether the Bitcoin’s recent round of blowout gains had been an “economic side show” mostly stemming off a growing bet from institutional investors to shelve quick profits, the world’s popular-most digital asset shot up to an all-time record peak of $55,772 late in the day, securing a weekly percentage gain of 13 per cent.
Bitcoin, which has rallied as much as 66 per cent thus far this month, was last trading 6.8 per cent higher to $55,079 in late-afternoon US trading hours.
Bitcoin market cap climbs above $1 trillion
If truth is to be told, recent gains in valuation of the world’s largest cryptocurrency, bitcoin, that surged more than 80 per cent this year, were largely prompted by scintillating signs of a widespread adoption of the digital asset by a swathe of mainstream investors ranging from BNY Mellon to Mastercard Inc.
to Tesla Inc. which had invested an eye-propping $1.5 billion in the digital asset earlier this month. Among other digital assets, Bitcoin rival Ethereum which was subject to a raft of lawsuits in 2019 over issuance of unregistered ICOs (Initial Coin Offerings) in the digital asset, had also hit a record high of $1,974,99 earlier in the day and was last trading 1 per cent higher to $1,958.76, largely catapulted by a launch of its futures' trading in Chicago Mercantile Exchange.
In tandem, shares’ prices of crypto-related stocks such as Silvergate Capital, crypto miner Riot Blockchain alongside Marathon Patent Group, took a torrential upsurge between 7.3 per cent to 13.5 per cent. Meanwhile, since the combined market cap of Bitcoin alongside its smaller rivals stepped up to a record $1.7 trillion on Friday, adding that Bitcoin’s next target could be to top Alphabet Inc.
which has a market valuation of $1.431 trillion, a portfolio manager at crypto hedge fund ARK36, Jacob Skaaning said, “If you look at gold, it has a market cap $9 or $10 trillion. Even if bitcoin gets to half of gold’s market cap, that’s still growth of 4X, or $200,000.
So, I don’t know when it stops rising. There will likely be some big fluctuations along the way, but I’m still very bullish and I believe the uptrend will continue for the time being. ”