Cryptocurrencies’ total market value topped $1 trillion for the first time on Thursday as volatile Bitcoin hit a new record of $38,000, reports Bloomberg. The record market value comes at a time cryptocurrencies gained fivefold last year.
- Strategists have linked the rise in cryptocurrency surge to demand from speculative retail traders, trend-following quant funds, and institutional investors.
- In the past year, Bitcoin more than quadrupled, fueling speculations that it was replacing Gold as the store of value.
- Analysts point to JP Morgan’s forecast of $146,000 bitcoin value as possibly fueling the rally.
- Bitcoin’s upside has also been linked to a U.S. regulatory update that allows a class of less volatile coins to be used by banks for payments.
- Some investors are cautious of cryptocurrency surge and fear an inevitable burst and its overall integrity.
Bitcoin is currently gaining. BTCUSD is up 3.96%