Bitcoin has been doing extremely well as of late. At the time of writing, the world’s number one digital currency by market cap has shot beyond the $56,000 mark, and it looks like the currency isn’t set to slow its momentum anytime soon.
Bitcoin Is Continuing to Explode
Recently, bitcoin moved beyond a $1 trillion market cap, making it more comparable to gold. This is more than double the $500 billion it was at during the early portions of 2021. It has also shot up in price by more than five percent in the last day alone. It’s probably fair to say that nobody expected bitcoin to reach this pinnacle so quickly.
The past few weeks have been “marred” by heavily positive news relating to bitcoin and cryptocurrencies. Tesla – an electric car company run by South African entrepreneur Elon Musk – has purchased approximately $1.5 billion worth of the digital asset, marking one of the largest institutional buys of a cryptocurrency in history.
In addition, several firms – including Uber and General Motors, both billion-dollar companies – have stated that they’re now looking into potentially allowing crypto payments for goods and services in the future. Lastly, there are several banks – such as BNY Mellon – that are now going to be offering crypto custody services to their many clients following steady increases in demand.
Many analysts have taken note of the positive surges and are out there discussing what could potentially lead to further jumps. Alex Kruger – a trader and economist – said in a recent interview:
Bitcoin’s price continues its run higher as expected, driven by extraordinary interest from institutions, corporate treasuries and retail investors. The only reason for concern at present is the excessive leverage built into the system. Excessive leverage can cause short-term corrections but can’t change a healthy trend.
Cory Klippsten – chief executive of the bitcoin app Swan Bitcoin – said that he thinks $1 trillion is just the tip of the iceberg for BTC, and he’s confident more spikes are in store for the asset. He comments:
$1 trillion market cap is important in as much as it will trigger many asset managers to take a close look, but with bitcoin’s total addressable market in the $200 trillion to $400 trillion range, it’s still just a drop in the bucket.
A Solid Investment Opportunity
Marc Bernegger – a board member at virtual asset broker Crypto Finance – believes that bitcoin is among the most profitable investments in the world, and he’s impressed with how far it’s come considering it’s still rather young when compared with stocks and precious metals. He mentions:
From zero to a total market cap of $1 trillion in only 12 years… What an impressive journey. Bitcoin evolved from an idea and innovation for cyberpunks into a serious emerging asset for serious investors all over the world.