Image: colourbox.de
According to calculations by the specialist portal “Infinite Market Cap”, all Bitcoins were more than 1.42 trillion for the first time. worth US dollars (1.3 trillion euros). The oldest cryptocurrency thus left behind the total value of silver (1.38 trillion dollars). On Monday afternoon, Bitcoin broke the threshold of $72,000 on the stock exchanges.
Fons gave impetus
Asset managers such as BlackRock, Grayscale and Fidelity, which have launched Bitcoin funds in the USA, have been responsible for the rapid rise in the price of Bitcoin in recent months. These Bitcoin ETFs were approved by the US Securities and Exchange Commission in January. They allow investors to invest in Bitcoin without having to directly purchase or hold the digital currency itself.
- Also read: Bitcoin at an all-time high: The reasons for the cryptocurrency’s soaring
Bitcoin’s rally began last fall. Since the beginning of the year alone, digital money has increased by around 62 percent against the US dollar. Gold tops the list of the most valuable investment products in “Infinite Market Cap”. Here the total holdings worldwide are ten times the value of Bitcoin (14.7 trillion dollars). Listed companies then follow in the ranking: Microsoft has a market value of 3.02 trillion. Dollar in second place, followed by Apple ($2.64 trillion) and AI chip maker Nvidia (2.19 trillion).
Is there a risk of a crash again?
With the new Bitcoin all-time high, there is no guarantee that the Bitcoin price will continue to rise in the future. After the previous high of around 69,000 dollars on November 10, 2021, the price fell to below 17,000 dollars within a year, also because the scandal surrounding the criminal activities surrounding the crypto exchange FTX shook the confidence of investors.
The strong Bitcoin price development is also likely to factor in an event that is expected for April 20th: the next so-called halving. The reward that Bitcoin miners receive for verifying crypto transactions is halved. Ultimately, the process leads to a slower growing supply of Bitcoin, which in the past has usually resulted in rising prices.
more from economics
