The combined value of the bitcoin and cryptocurrency market has soared to over $1 trillion with prices rising across the board.
The price of bitcoin has soared to nearly $38,000 per bitcoin, with the total value of the world’s largest cryptocurrency now approaching $700 billion — and pushing bitcoin to the top of the charts for the world’s largest asset.
The surge in excess of $1 trillion comes as smaller cryptocurrencies including Ethereum, Ripple’s XRP, cardano and stellar are posting significant gains.
The recent bitcoin price rally, with bitcoin up 7% in the past 24 hours, comes after Democrats won the near-term run-off in Georgia, giving the party control of the US Senate for the first time since 2015.
Many predict that the Democrats’ control of the Senate will mean more monetary stimulus for companies and individuals hit by the pandemic in a market already awash with stimulus money and pent-up demand.
“Bitcoin hit another all-time high at around $37,500 before starting a cautious correction,” Alex Kuptsikevich, chief financial analyst at FxPro, said by email, citing “generous economic stimulus and the printing of new dollars” as the basis for broad asset diversification among Institutional investors.
“At the moment, the dynamics of the first cryptocurrency, as well as the entire market, do not seem to be in the final stage of the bubble, followed by a massive collapse. In recent weeks, we have seen a cautious but regular rally to new highs. Corrections are occurring, but Bitcoin is rapidly passing through the consolidation phases and continues. On the rise. The benchmark currency now denies the idea of overbought. It is a large capital that seems to make the price dynamic more moderate and steady.”
In the past year, a number of prominent investors, led by the famous Paul Tudor Jones, have begun to name bitcoin as an emerging hedge against inflation, using it to hedge against what they see as unprecedented damage to the dollar’s stability by government spending and money printing.
This support has helped institutional investors and Wall Street giants soften their skeptical view of Bitcoin and cryptocurrencies.
“Bitcoin has once again jumped to all-time highs,” Paolo Ardoino, chief technology officer of Bitcoin and cryptocurrency exchange Bitfinex, said in comments via email, adding that “institutional investors scrambling to battle with Bitcoin buy orders is a stark admission.” The quantum leap represented by Bitcoin technology.”
The cryptocurrency market has pushed over $1 trillion as XRP, the digital token created by Ripple and the fourth most valuable cryptocurrency, adding an astonishing 30% in the past 24 hours.
The price of Ripple’s XRP has been on a fast track for the past month after the rally was wiped out in late November due to a lawsuit brought by the US Securities and Exchange Commission against Ripple, casting doubt on the future of XRP.
Elsewhere, Cardano and Stellar, the sixth and ninth largest cryptocurrency by value, have added about 20% and 40% respectively over the past 24 trading period.
Ethereum, the second largest cryptocurrency, and Litecoin, the fifth, added about 5%.