The cryptocurrency industry reached yet another landmark today, as Bitcoin’s market cap rose to $1 trillion for the first time ever. The said spike followed a similar price hike, with the value of the cryptocurrency rising to $53,936 at press time.
By the end of January, when the value of Bitcoin had again fallen close to $30,000, the market cap had depreciated from $760 million to $600 million. However, as the price started to rise again, market capitalisation also grew. In fact, when the valuation of BTC recently reached its ATH of more than $52,500, its market cap was about $983 billion. However, as a result of the aforementioned rise, both its price and market caps have risen.
Meanwhile, the rest of the altcoin sector is also increasing, with cryptocurrency hikes following a similar rise in market caps.
Interestingly, Bitcoin’s market cap was speculated to hit $1 trillion earlier. For example, on 12 February, Binance announced that Bitcoin’s completely diluted market cap had broken past $1 trillion when BTC was priced at around $47,000. In fact, Tim Draper was also one to speculate that the market cap would reach $1 trillion when the crypto asset price hit an ATH of more than $52 trillion.
According to crypto-analyst PlanB, this new ATH in the market cap of Bitcoin is a phenomenon of the new world. Plan B summarized this by saying,
“It is simple. In the old world your money loses value, because governments debase currencies to fund their warfare & welfare state. In the new world #bitcoin increases in value, because math caps the monetary base at 21M BTC. The new world is eating the old world right now.”
Given that the digital asset reaches the $1 trillion mark, confidence is understandably strong. It should be remembered, however, that such growth needs to be maintained in such a way that it has some hope of rebalancing the $10 trillion Gold market cap.
It’s worth noting that while Bitcoin did indeed hit new peaks on price charts, its weighted social sentiment hasn’t always balanced. This measure would be critical if Bitcoin were to hit Gold’s $10T market cap.
Source: Santiment
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