Bitcoin’s meteoric rise to record highs of $39,000 has propelled the overall cryptocurrency market cap to over $1 trillion. The milestone came on Bitcoin rallying by more than 8% in line with the bullish momentum in the overall cryptocurrency sector.
Cryptocurrency $1 Trillion Milestone
Even as Bitcoin raced to record highs, other cryptocurrencies also registered substantial gains helping propel the overall cryptocurrency market past the $1 trillion market. Ethereum the second-largest crypto has also been on a fine run rallying by more than 60% over the past week.
Tether USDT has also been on a fine run rallying and consequently surpassing Ripple for the third spot on market capitalization. While Ripple has been under pressure amid increased regulatory pressure, it has started gaining momentum rallying by more than 43% in recent days.
Cryptocurrencies have been on a fine run in recent weeks rallying to record highs amid weakness in the U.S dollar. Helping fuel the rally is growing institutional interest as investors shun riskier assets in favor of Bitcoin which has emerged as a safe-haven in recent months.
For how long cryptocurrencies will continue rallying remains to be seen given the underlying factor supporting further rallies. The U.S is entering one of the most chaotic sessions mired by administration change. While equities are also at an all-time high a major correction could be in the offing as investors remain wary of valuation levels.
Bad handling of the coronavirus situation is one of the factors that could come to hurt investor’s sentiments about equities. Concerns that the equity market is overly inflated are another development that could force investors to shun the equity market in favor of other alternative assets.
Bad transition into the next administration in the wake of Joe Biden certification is another development that could take a toll on sentiments in the market. Whenever equities are not doing well investors often turn to commodities such as gold for safety.
Crypto Growing popularity
In today’s world, the focus has increasingly shifted from commodities amid rising cryptocurrency popularity. Investors shunning the equity and commodity market could lead to an influx in the capital in the cryptocurrency market a development that could see a number of altcoins led by Bitcoin racing even higher from current levels.
Many analysts expect Bitcoin to rally past the $40,000 mark probably to the $50,000 mark. The fact that Bitcoin is known to make big gains of up to $7,000 a day makes the $50,000 a highly conservative target from current levels.
Amidst cryptocurrencies rally, investments in the sector are also gaining momentum. Immediate reports indicate that Korea gaming company Nexon is preparing to buy crypto exchange Bithumb for $460 million.
Bithumb was put up for sale last month and continues to elicit strong interest from many quarters. While Bithumb is South Korea biggest exchange, it’s been marred with fraud investigations in recent months targeting the company’s owners
In September, authorities raided the company’s premises under search and seizure orders. The raid came after the exchange owner and Chairman Lee Jung Hon was accused of profiting $27.5 million on the sale of Bithumb tokens that were never listed.