Another record day for Bitcoin, the value of which rose to $ 40,000 before falling back to 38,000. This trend is pulling the entire cryptocurrency market, topping the trillion dollar mark for the first time.
Within a few days, Bitcoin is ready to forget the already remarkable performance of December 2020. In that month alone, the price rose 50%. The asset valuation was thus over 300% for the year as a whole.
And 2021 is off to a good start for investors. Cryptocurrency is already earning more than 30%, or around $ 11,000. On Jan. 7, Bitcoin hit a new all-time high of just over $ 40,000.
Institutional and uncertainty drive Bitcoin
If the cryptocurrency has now fallen to $ 38,000, its level will remain sizeable. And the arrival of traditional funds and investors in recent months has further added confidence.
« Global macroeconomic uncertainty has the potential to devalue fiat currencies, which could make Bitcoin more attractive, » CoinDesk added. And the recent violence in the US Congress only adds to that uncertainty.
The overall valuation of Bitcoin now tops $ 700 billion. And its surge is also driving the value of other cryptocurrencies, particularly ether. For analysts, the token is indeed undervalued.
Historical record of trillions for cryptocurrency
For many investors, especially private individuals, Ethereum is also more financially accessible than Bitcoin. The explosion of Google requests for Ethereum testifies to this.
On the Bitcoin side, whales are the most active and are collecting more and more tokens. The Kraken exchange has around 16,300 addresses with more than 100 BTC. In December these totaled almost 11.4 million BTC.
Overall, however, the entire cryptocurrency market is benefiting from the current situation. On Wednesday, January 6th, the total value of cryptocurrencies passed the $ 1 trillion mark for the first time. TradingView reminds us that the previous record of 760 billion dates back to 2017.