The cryptocurrency market is now worth more than $ 1 trillion for the first time, with Bitcoin reaching a record high above $ 38,000 | Currency News | Financial and business news

The visual representation of the Bitcoin digital currency (BTC) is arranged on the circuit board
  • The cryptocurrency market exceeded $ 1 trillion on Thursday, after Bitcoin hit a record just over $ 37,000.
  • The entire cryptocurrency market is now worth nearly half of what Apple accounts for and more than the entire economy of Switzerland.
  • Competitor token Ethereum achieved a two-year high, above $ 1,200, while smaller altcoins including XRP also rallied.
  • Visit Business Insider’s homepage for more stories.

The cryptocurrency market is now worth more than $ 1 trillion for the first time ever after Bitcoin’s price rose 6.7% on Thursday, to a record high of $ 38,357.66.

Bitcoin, Which has risen by nearly 400% in the past 12 months, has seen massive investor interest in recent weeks.

The driving forces behind the rally are investors’ desire to search for an alternative, decentralized asset that is not linked to any central bank, whose actions could devalue the traditional currency, as was the case with the US dollar with zero Federal Reserve. – Interest rate policy and stimulating trillions of dollars over the past year.

“As buying interest continues to propel the market, any sell-offs of setbacks will be seen as another opportunity to enter a market that is currently pushing relentlessly up,” said Nick Cole, analyst at DailyForex.

He added, “As is always the case in the cryptocurrency space, caution must be exercised, especially with volatility at its current maximum level.”

Read more: Cryptocurrency CEO collapses why wouldn’t he be surprised to see Bitcoin and Ethereum rise at least 100% in 2021 – and says the current sell-offs are “ a very normal and healthy thing ”

With a market capitalization of over $ 1 trillion, the value of cryptocurrencies is now nearly half that of Apple, the most valuable company in the world. It is also more valuable than the entire Swiss economy – home to some of the largest financial institutions in the world and the largest treasuries of gold.

“Bitcoin continued to chop down trees, figuratively speaking, and it rose to a new record high,” Michael Hewson, chief strategist at CMC Markets, said in a daily note.

Greater transparency afforded by regulation and increased market depth helped cryptocurrencies shed some of their past reputation as an asset class that was riddled with speculation, questionable market practices and fraud.

Big name investors Such as Paul Tudor JonesAnd the Mike NovogratzAnd the Anthony Scaramucci They have thrown their weight behind Bitcoin and even the crypto skeptics Ray Dalio He described it as “interesting.” Payment companies such as PayPal and Square allow their users to trade in cryptocurrencies and an increasing number of fintech companies outside the United States are seeing increased interest from their customer base.

Read more: Buy these 30 stocks that easily beat the market in 2020 and prepare for the best global returns in 2021, says RBC.

JPMorgan said on Monday that Bitcoin might finally be out Trade up to $ 146,000 If investors embrace it as an alternative safe haven for gold, although he added that such a rally may not be sustainable.

Bitcoin is already the largest cryptocurrency by market value, and the most widely used, with a current value of around $ 700 billion. Next is Ethereum, Which rose 800% last year to a two-year high of $ 1,228 on Thursday on the Coinbase platform. Its market value is around $ 138 billion.

Ripple Labs XRP His fortunes have been mixed lately. US regulators recently issued a complaint against Ripple on the grounds that sales of its XRP token were not legitimate, as it considered the coin a safe and not a cryptocurrency.

After more than doubling its value in just one week in late November, XRP lost nearly half of its value a month later. Since the start of the month, the token value has doubled again. XRP was last up nearly 30% on the day at around $ 0.328 on the Bitstamp exchange.

Small currencies, known as altcoins, have hit the arms of Bitcoin and Ethereum in the past year. Litecoin And the Cardano, And so-called stablecoins – those backed by traditional currencies – such as Rope They have also seen its value rise.

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