Cryptocurrency Market Value Tops $1 Trillion as Bitcoin Breaches $37 2ry3b 000

Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year. c5g3c

By Olga Kharif, Bloomberg | Updated: 7 January 2021 11:57 IST

Cryptocurrency Market Value Tops $1 Trillion as Bitcoin Breaches $37,000

Proponents of Bitcoin argue it offers a hedge against dollar weakness and the risk of faster inflation 6m1u3e

Highlights

Active Bitcoin s are nearing all-time high levels of late 2017
Fewer than 2 percent of s hold 95 percent of Bitcoin supply
The last big Bitcoin boom began imploding in late 2017

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The total market value of cryptocurrencies sured $1 trillion (roughly Rs. 73,12,050 crores) for the first time Thursday amid a frenzied and volatile rally in Bitcoin to yet another record.

Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year, data from tracker CoinGecko shows. Strategists have cited demand from speculative retail traders, trend-following quant funds, the rich and even institutional investors as among the reasons for the surge.

Ether on about 14 percent. Ether is up 62 percent so far this year.

Bitcoin May Face Regulatory Scrutiny After Record-Breaking Rally

Digital coins are jumping in a world awash with fiscal and monetary stimulus, even as some commentators fear an inevitable bust and others question the basic integrity of crypto markets. Proponents of Bitcoin argue it offers a hedge against dollar weakness and the risk of faster inflation, a bit like gold, while critics decry the intellectual soundness of comparing the two assets.

Active Bitcoin s are nearing their all-time high levels of late 2017, according to researcher Flipside Crypto - possibly a sign that some holders are planning to sell. Fewer than 2 percent of s hold 95 percent of Bitcoin supply, so a few big trades can impact prices. The last big Bitcoin boom began imploding in late 2017.

Some traders pointed to JPMorgan Chase's long-term Bitcoin price forecast of $1,46,000 (roughly Rs. 1 crore) as possibly fueling the rally. Others said sentiment was boosted by a US regulatory update that allows a class of less volatile coins to be used by banks for payments.

- With assistance from Lynn Thomasson.
© 2021 Bloomberg LP

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