The world’s first and most famous cryptocurrency reached a new record this Saturday. Overnight Bitcoin (BTC) appreciated more than 5%, while market capitalization jumped to 879.4 billion euros, close to the “billion” dollar.
The market capitalization value, also known as market cap, is calculated by multiplying the current price of BTC by the respective current outstanding offer – the current net worth of Bitcoin in circulation.
Bitcoin reaches new market capitalization record
The cryptocurrency thus contradicts the opinions of several experts in the field of Economics who pointed to an imminent fall, continuing to insist on the “bursting of the bubble”. On the contrary, cryptocurrency continues to grow and appreciate.
The discredit of analysts who point out the currency’s volatility now makes it impossible not to count Bitcoin among the major currencies in the world. Since the beginning of February, BTC has appreciated by around 60%, breaking new records at the beginning of the week, reaching $ 51,000.
Now, with the new market appreciation, Bitcoin jumps to $ 52,000, a weekly increase of 8% that came to leverage the other cryptocurrency market. The data are advanced by the CoinMarketcap website, attesting to the strength of BTC.
More specifically, this source points to a capitalization of 982 million dollars, this being the value of all digital currency in circulation today.
In fact, if you add up the value of all the cryptocurrencies in circulation, their value can exceed 1.5 trillion dollars.
It is important to underline that this new bonanza period for cryptocurrencies is part of the support that Big Tech gives to this digital market. Companies like Tesla have been an avid source of support for Bitcoin, and even Dogecoin, as a joke.
In addition to Tesla, names like Mastercard and BNY Mellon have shown signs of acceptance, the same being replicated by the mass of investors, especially those most attentive to the technological sector.
Experts still suspect Bitcoin
Despite the new high, cryptocurrencies and other digital assets continue to be viewed with suspicion, a hedge poorer for large stock losses. They also point out the questionable benefits of diversification, given the different nature of each currency and its mission.
By the way, reaping JP Morgan’s testimony “(…) the correlations with cyclical assets increase as the cryptographic property is incorporated”. Analysts at this entity point out that Bitcoin’s value is well above estimates of what the fair value of the currency would be.
In summary, the volatility of cryptocurrencies, of which Bitcoin is the paradigmatic example, remains an obstacle to its implementation as a viable option for widespread payments.
On the way to digital gold?
On the other hand, Bitcoin is hailed as digital gold by cryptocurrency enthusiasts. Something that justifies with the possibility of Bitcoin and other cryptocurrencies to safeguard themselves against the inflation rates triggered by the governments and sovereign entities of each country, especially in this pandemic context.
Finally, according to the testimony gathered by the Reuters agency, Bicoin would have to jump to $ 146,000 in the long run for its market capitalization to equal or exceed the total private sector investment in gold, made through stocks or bars precious metal.
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