Thanks to Bitcoin, the crypto market reached a new historical milestone by exceeding one billion dollars in market capitalization.
Bitcoin’s historic bull run has led to a series of conquests by the entire digital currency ecosystem. One of the most outstanding is that the crypto market reached a market capitalization of $1 trillion USD.
It should be noted, that the price of Bitcoin has not stopped growing during the last few months. At the time of writing, the price of the most important of the crypto currencies, is close to $40 thousand dollars per currency. This is double the historical record reached in 2017, when it was at the threshold of $20 thousand.
This bullish race of Bitcoin has made its capitalization reach $728 billion dollars. In this way, the crypto market in general reached $1 trillion in that same line. This amount exceeds that of economies like Switzerland and half of the stock market value of the powerful technology company Apple.
Bitcoin’s consolidation made it possible for the crypto market to reach one billion
One of the big problems with the crypto market, led by Bitcoin, is the volatility that reached high levels in other times, which negatively affected its capitalization. Large investors had stayed away for fear of losing their capital in one of the sudden falls that were commonplace in the value of Bitcoin.
However, all that changed in 2020, with the arrival of the crisis and the Covid-19 pandemic. The affected people began to look for alternative, quick and safe reserve assets. In that area, Bitcoin Revival offers great advantages over gold itself, the most important reserve value in human history.
In this way, large investors aimed their artillery at the crypto currency created by Satoshi Nakamoto. As a result of this and a series of other events, including fears of USD inflation, interest in Bitcoin has remained among the first choices of institutional investors. This has catapulted the crypto market to unprecedented capitalization.
The growing demand for Bitcoin has allowed the crypto market as a whole to grow to $1 trillion.
It’s not a bubble, but it will still deflate
Another criterion related to the price of Bitcoin is that it, in the middle of the current bull run, can go back by 40%. This opinion is firmly held by the Dutch investor Didi Taihuttu, who in an interview with Business Insider, explained that there are multiple reasons not to rule out an early fall in the price of cryptomoney, which would significantly affect the capitalization of the crypt market.
„From its birth until December 2017 and again in 2020, Bitcoin has risen by 200% and then fallen by 40%. It goes up by 100% and then it goes down by 30%,“ he explained. At the same time, he made clear that it is not „a bubble but a cycle that repeats itself“.
In this sense, it should be taken into account that the movement of the entire crypto market, including its capitalization and prices, depends on Bitcoin. Despite the dominance of Bitcoin in this universe, other crypt currencies have also played a very important role. One of them is Ether, which is on the verge of its historical peak.
The importance of Ether’s digital currency is that it is the basis for the entire system of Decentralized Finance (DeFi). For this reason, many investors are betting on the flourishing of the second project in the crypto market after Bitcoin, which reached $142.2 billion dollars by this date.
Other currencies that contributed important amounts of capitalization, are the stablecoin Tether (USDT), with $22.8 billion. Below are XRP with $15.5 billion and Litecoin with $11.2 billion.
Facts to consider
- The capitalization of the entire crypto market in general, reached a total of USD $1,056B up to the date of writing.
- Of this amount, USD $728 billion corresponds to Bitcoin, while USD $323 billion corresponds to the rest of the market.
- In this way, the capitalization of the universe of crypto-currencies, surpasses the economy of countries like Switzerland.
- At the same time, this milestone of the crypto market, makes it reach half of the valuation on the Apple stock exchange.