Bitcoin hits a $ 1 trillion market cap, climbing to another record high Tesla and MasterCard to BNY Mellon, bitcoin’s gains have been derived from signals that are gaining acceptance among mainstream investors and companies.
Bitcoin hits $ 1 trillion
Bitcoin hits touched a market capitalization of $ 1 trillion as it reached another record high on Friday, with analysts warning that it is “the economic sideshow” and a poor hedge against declining stock prices.
The world’s most popular cryptocurrency jumped to an all-time high of over $ 54,000, setting it on course for a weekly jump of over 11%. It has grown by almost 64% so far this month and was up 5.5% to $ 54,405.
From Tesla and MasterCard to BNY Mellon, bitcoin’s gains have been derived from signals that are gaining acceptance among mainstream investors and companies.
The market cap of all digital coins is around $ 1.7 trillion Bitcoin hits
If you really value the reserves of bitcoin, there is still a lot of upside, ”said John Wu, president of AVA Labs, an open source platform for creating financial applications using blockchain technology.
“If you look at gold, its market cap is $ 9 or $ 10 trillion. Even if bitcoin hits half of the gold market cap, there is an increase of 4X or $ 200,000. So I don’t know when it’s going up, “he said.
Nevertheless, many analysts and investors are skeptical of the patchily regulated and highly volatile digital assets, which are of little use for commerce.
Analysts at JP Morgan said the current prices of bitcoin are above the fair value estimates. The investment bank said in a memo that mainstream adoption increases the correlation of bitcoin with cyclical assets, which rises and falls with economic changes.
JP Morgan said, “Crypto-assets continue to rank as the worst hedge for major drawdown disparities, where there is questionable diversification gains at prices above production costs, while the correlation with crypto ownership is increasing as crypto ownership increases. Is in the mainstream. “
Bitcoin is an “economic spread”, calling for innovation in financial technology and the growth of digital platforms in credit and payments “the real financial transformative story of the COVID-19 era”.
Other investors this week said that the volatility of bitcoin presents a barrier to its becoming a comprehensive means of payment.
On Thursday, Tesla boss Elon Musk – whose tweets have triggered a bitcoin rally – said that the ownership of the digital coin was only slightly better than holding cash. He also defended Tesla’s recent $ 1.5 billion purchase of bitcoin, which ignited mainstream interest in the digital currency.