The astonishing rally has catapulted the cryptocurrency market value to $1 trillion as Bitcoin smashed through a new record high above $37,000. While it might be unfathomable to many, the cryptocurrency market has now entered the trillion-dollar companies club, which is mostly dominated by global corporations.
Cryptocurrency Market’s Ongoing Success
It was the American multi-national companies, Apple, and Amazon, that first cracked the trillion-dollar ceiling back in 2018 before its shares took a plunge. As noted by Messari’s Jack Purdy, it took Apple 42 years to hit the said market cap and another two years to hit $2 trillion. The cryptocurrency industry, on the hand, hit the mark in 1/4th time.
According to CoinGecko, the combined price of all cryptocurrencies currently in circulation now stood at $1.015 trillion, meaning, 1% of all the money in the world is now held in Bitcoin and other cryptocurrencies.
Interestingly, during the 2017 bull run, the cryptocurrency market cap peaked at $760 billion only for the figures to plummet shortly after. The soaring figure is not something that the community was surprised about. The confidence among the participants has been on a rise for quite some time now.
Erik Voorhees, the CEO of ShapeShift, for one, has made a strong prediction about the asset class in his recent tweet where he said,
“Crypto Market Cap: $1 Trillion. Took ten years. It will take less than six months to get to $2 Trillion.”
Next Up, Bitcoin?
Bitcoin has already gained nearly 30% since the beginning of the year. So what is behind this new record? It is the uncertainty of a potential looming financial crisis. The weakening US Dollar is yet another factor that has facilitated the money flowing through Bitcoin.
Over the past several weeks, portfolio diversification was also noted which has helped other large-cap assets such as Ethereum, and other cryptocurrencies to welcome an inflow of capital from investors both novice and institutional.
Bitcoin remains the absolute leader in the market. According to AssetDash’s chart for ‘Top Assets by Market Cap’, the leading cryptocurrency crossed Chinese conglomerate, Alibaba to score the top 8th position on the ladder. The crypto-asset was now trailing behind the US electric vehicle giant, Tesla which was seated at the 7th position.
With its price eyeing to break yet another milestone of $40,000, the industry proponents now predicted the Bitcoin market cap to soon hit $1 trillion.
