Home Business Bitcoin rally takes market cap of over 6,000 cryptocurrencies to whopping new high of $1.24 trillion

Bitcoin rally takes market cap of over 6,000 cryptocurrencies to whopping new high of $1.24 trillion

Financial Express - Business News, Stock Market News

"The government will explore the use of the blockchain technology proactively for ushering in the digital economy," Thakur said in a written reply to a question on introduction of India's own crypto-currency.The world’s most valuable cryptocurrency Bitcoin traded at $41,973 price on January 8, 2021.

The Bitcoin price rally, which topped $40,000 again to hit the $40,664-mark at 10.29 pm GMT on Saturday, as tracked by Coindesk, has helped the market cap of all cryptocurrencies scale to a new record. The combined value of 6,223 cryptocurrencies, as CoinGecko, hit $1.24 trillion on Saturday. The new high came nearly a month after the total market cap scaled to $1.1 trillion on January 10, 2021, after hitting the earlier all-time high of $848 billion on January 6, 2018. The world’s most valuable cryptocurrency Bitcoin traded at $41,973 price on January 8, 2021, as per data from Coin Metrics. It’s since declined below the $41,000 level.

Currently, the market cap of Bitcoin stood at $722 billion, as per CoinMarketCap, far ahead of the $186 billion market cap of the second most valued cryptocurrency – Ethereum, which is currently traded at $1,625. According to Philip Gradwell, chief economist at Chainalysis, bitcoin’s price more than doubled from the $10,000 level in the time new investors enhanced their buying spree. The new demand helped boost the cryptocurrency’s rally to an all-time high.

Also read: Despite pandemic blues, MakeMyTrip raises $200 million through zero-coupon convertible bond

In a recent note published by JPMorgan, the investment bank predicted Bitcoin’s price rise could be as high as $146,000 in long term to compete with gold as an ‘alternative’ currency. “A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term,” strategists at JPMorgan wrote, Bloomberg reported. However, “a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year.” The market cap of Bitcoin, which is calculated by multiplying the price by the total number of coins in circulation, would have to rise 4.6 times to match the $2.7 trillion of private sector gold investment.

Recently Bitcoin’s closest rival Ethereum had scaled up from $414 price with a market cap of $46.8 billion to $1,323 and $151.4 billion in market cap – a 219 per cent increase in price and 223 per cent jump in valuation in the past three months, according to the data from CoinMarketCap.



This article is auto-generated by Algorithm Source: www.financialexpress.com

Related Posts

0

Ad Blocker Detected!

Refresh