Bitcoin recorded a new record above $38,000, driving all digital assets to skyrocket. As a result, the cryptocurrency market capitalization exceeded $1 trillion for the first time in its history.
January 07, 2020 | AtoZ Markets – On Thursday, January 7, bitcoin renewed historical highs, breaking several psychologically significant resistance levels at once.
Bitcoin surges above $38,000
At the time of writing, the record bitcoin price is trading at $38,025. The market capitalization of all digital assets in circulation has exceeded $1 trillion.
Over the week, the coin has risen in price by 30%, and its market capitalization exceeded $700 billion. Thus, Bitcoin has moved to the eighth line in the global ranking of the most expensive assets.
Given the high correlation in the cryptocurrency market, Bitcoin’s rise pulled the rest of the coins along with it. Almost all digital assets from the top 10 according to the CoinMarketCap rating are in the green zone. Even the long-suffering XRP has risen in price by 48% in the past 24 hours and is now trading at around $0.34.
Institutions behind Bitcoin bull run
Bitcoin is rising in value for a number of reasons, including interest from large institutional and corporate investors.
In addition, cryptocurrency is seen as a defensive asset in the face of potential inflation and economic uncertainty.
Analysts at JPMorgan recently said Bitcoin could be worth around $146,000 over the long term as companies see it as an alternative currency. However, investment bank strategists noted that for this, Bitcoin needs to become less volatile.
However, critics continue to call Bitcoin a bubble. Among them is the renowned economist and strategist David Rosenberg, who is convinced that parabolic growth in such a short time is an anomaly for any asset.
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