Bitcoin’s market value topped $1 trillion for the first time

Bitcoin

The world’s largest cryptocurrency hit an all-time high on Friday, pushing its market value above $1 trillion for the first time.

A single bitcoin jumped to a record at $$53,910.44, based on prices tracked by CoinDesk, briefly bringing its total market capitalization to a peak at $1,002,547,798,785, according to data from research company CoinMarketCap.com.

At around $53,734, Bitcoin last rose 4% on Friday and has surged over 85% since the beginning of 2021. In contrast, gold prices GC00, 0.46%, down almost 6% so far this year.

The fervor for bitcoins was given a fresh spark earlier this month when Elon Musk’s Tesla Inc. said that it had acquired $1.5 billion in bitcoins in January, which could accept it for payment in the future.

Others, including PayPal Holdings Inc. PYPL, has opened their cryptocurrency platform to all US customers back in November. It has helped to drive the price of bitcoin sharply higher in recent weeks and months.

It’s worth noting that while bitcoin has been the parabolic move in recent times, its market share is only around 60% compared to other alternative digital assets, down from a peak of around 70% earlier this year.

It could indicate that other cryptocurrencies, such as Ethereum on the Ethereum blockchain, are also attracting interest from Bitcoin buyers.

Damon Harrison
Market Analyst, IPG Group