Cryptocurrency Market Cap Touches $2 Trillion Led By Bitcoin; Bitcoin Market Cap At $1.1 Trillion

The market cap of bitcoin hit $1.1 trillion, however, the digital currency has been trading in a relatively narrow range after shooting above the $61,000 level in mid-March. Bitcoin was last up 1.58 per cent higher at $58,589. According to analysts, as long as bitcoin stays above the $53,000 mark, it will be able to sustain its $1 trillion market cap. (AlsoRead:Bitcoin Market Cap Hits $1 Trillion, Currency Soars To Record High Of $ 57,000: 10 Points )

Bitcoin rival Ethereum (ETH), the second-largest cryptocurrency in terms of market cap, was up 3.53 per cent at $2,121.25. On Monday, ethereum’s market cap was $244 billion and the currency hit a record high of $2,144.99 on April 2, Friday. The surge in cryptocurrency market cap was led by bitcoin but was closely followed by ethereum. ETH has witnessed a huge demand from investors this year.

Bitcoin has surged more than 100 per cent this year, while rival ethereum has gained almost 190 per cent. Both cryptocurrencies have massively outperformed the traditional asset classes. The virtual currencies have registered huge gains after gaining further mainstream acceptance among investors. (Also Read: Bitcoin Crosses $50,000 In Historic Win, Gains Further Mainstream Acceptance: 10 Points )

The huge stride was mostly led by corporate majors such as Tesla Inc and Bank of NY Mellon entering the cryptocurrency world. In February, billionaire Elon Musk’s electric vehicle company Tesla Inc announced a $1.5 billion investment in bitcoin, leading to a dizzying rally for the currency that made history further by crossing the $50,000 mark for the first time ever. (Also Read: Bitcoin Shoots Higher To $48,216 In Dizzying Rally After Tesla’s Investment:10 Points )

In a recent research report, blockchain data provider Glassnode stated that bitcoin sustaining the $1 trillion market cap for one week is a strong vote of confidence for the virtual currency and the cryptocurrency asset class as a whole. The on-chain activity will reinforce bitcoin’s robust position, with a volume equivalent to more than 10 per cent of the circulating supply, transacting above the $1 trillion milestone.

On January 7, 2021, the total market value of all cryptocurrencies rose above the $1 trillion mark for the first time ever, as a result of bitcoin’s rally. It crossed the $40,000 mark then. Bitcoin accounts for around 69 per cent of the total market cap, followed by rival Ethereum with a 13 per cent share. (Also Read: Cryptocurrency Market Cap Touches $1 Trillion: All You Need To Know )

Bitcoin is simply an equivalent of cash, but in electronic form and is held in virtual wallets with unique keys. One can not hold bitcoin in physical form. It is decentralised by a ledger system called blockchain, which means that it is not controlled by a bank or central authority. Bitcoin’s bull’s stint last year began after PayPal allowed customers to use the virtual currency on its network. (Also Read: From $2,000 To $20,000 In 3 Years And Counting: All You Need To Know About Bitcoin’s Rally )

”Witnessing the strong momentum in the past year, it wasn’t surprising to have achieved this milestone. Along with a surge in retail investment crypto industry has also witnessed robust growth in institutional investors and mainstream companies participation. One of the prime example of large institutional investment is latest bitcoin purchase of $15 million by Microstrategy,” said Sumit Gupta, Cofounder and CEO, CoinDCX.