Another day of records for Bitcoin, which rose to $40,000 before dropping to $38,000. This trend is driving the entire cryptocurrency market, which for the first time has passed the $1 trillion mark.
In the space of just a few days, Bitcoin is on the verge of making people forget its already considerable performance of December 2020. In that month alone, its price grew by 50%. Asset valuation thus exceeded 300% for the whole year.
And 2021 is off to a good start for investors. The most valuable cryptocurrency has already appreciated more than 30%, or about $11,000 in value. On 7 January, Bitcoin set a new all-time high of just over 40,000 dollars.
Although the biggest cryptocurrency has since fallen back to $38,000, their level is still considerable. And the arrival in recent months of traditional funds and investors is fuelling even more confidence.
“Global macroeconomic uncertainty has the potential to devalue fiat currencies, which could increase the attractiveness of Bitcoin,” says CoinDesk. And the recent violence in the U.S. Congress is further fuelling this uncertainty.
The total value of Bitcoin now exceeds $700 billion. And its growth is also driving the value of other cryptocurrencies, particularly Ethereum. For analysts, the token remains undervalued.
Ethereum is also more affordable than Bitcoin for many investors, especially private individuals. The explosion of Google queries about Ethereum is proof of this.
On the Bitcoin side, whales are the most active and are accumulating more and more chips. The Kraken exchange counts about 16,300 addresses holding more than 100 BTCs. In December, these accumulated nearly 11.4 million BTC.
But overall, the entire cryptocurrency market is benefiting from the current situation. On Wednesday, January 6, the total value of cryptocurrencies exceeded the $1 trillion mark for the first time. TradingView recalls that the previous record dates back to 2017 with $760 billion.
Whether Bitcoin still leads the pack in the coming weeks or an alt season takes place is anyone’s guess!