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%