Cryptocurrency Trading, Bitcoin Market

The total value of all cryptocurrencies passed $1 trillion Wednesday for the first time ever, per CoinGecko‘s index of 6,124 assets. At its prior peak in late 2017, the market’s total capitalization was just above $760 billion, according to TradingView.

Bitcoin represents roughly 69% of the market’s value, according to Messari.

Traders aren’t surprised by the market’s soaring value.

“Is it frothy? A little bit in the short term,†said Qiao Wang, co-founder of decentralized finance (DeFi) accelerator firm DeFi Alliance and former quantitative trader at Tower Research. “But is it ridiculous,†he asked rhetorically. “Nope.â€

Over the past 12 months, the nearly parabolic rise of bitcoin and other cryptocurrencies has come as deep-pocketed institutional investors show increasing interest in bitcoin with a new crop of retail investors following their lead and showing some interesting in alternative cryptocurrencies (altcoins) as well.

Bitcoin has already gained 25% in January, following its more than 300% gain in 2020. Ethereum has also soared over the past 12 months, reaching a total gain of roughly 860% Wednesday after trading above $1,200 for the first time since early 2018.

Cryptocurrency Trading, Bitcoin Market
Cryptocurrency total market value
Source: TradingView

“The $1 trillion mark cements cryptocurrency as a investable asset class that no longer sits on the fringes of Traditional Finance as a toy for retail investors,†said Jack Purdy, decentralized finance analyst at Messari. “It demonstrates that this asset class is large enough to absorb large orders like we’ve seen recently with the slew of institutions entering over the last few months.â€

Some of those large investments have come from firms like technology firm MicroStrategy, who has scooped up over 70,000 BTC with plans to buy more, and London-based asset manager Ruffer Investment, who dumped $740 million into bitcoin toward the end of 2020.

“Cryptocurrencies are now almost an institutional-grade venture bet,†Wang told CoinDesk. “The market is finally liquid enough to deploy large sums of capital, but still early enough for a 10x return.â€

For some investors, those returns are coming from altcoins. As bitcoin continues to climb above $30,000, altcoin indexes have gained momentum.

Per FTX’s markets, its index of 10 leading altcoins has rallied over 30% in 2021. The “shitcoin†index, representing micro-cap altcoins, has also gained over 20% so far in January.

“A trillion dollar market cap is a big milestone for crypto, especially considering it was below $200 billion less than a year ago,†said Nate Maddrey, research analyst at Coin Metrics, in a direct message with CoinDesk. “But crypto’s total market cap is still only a fraction of gold, equities, and many other assets.â€

From “shitcoin†indexes to the bellwether assets like bitcoin, institutional buyers and retail speculators alike can likely find something to pique there interest in this newly-minted, trillion-dollar market.

“Crypto is in a unique position to be the most important asset class of the 21st century and still has a lot of room to grow,†Maddrey said.

RELATED NEWS

US Authorities Take Action to Shut Down Crypto Trading Platform Allegedly Defrauding Thousands of Investors

The New York attorney general and the U.S. Securities and Exchange Commission (SEC) have filed charges against a cryptocurrency trading platform that allegedly defrauded thousands of investors out of over a million dollars. US Regulators Allege Coinseed Operates Illegal Crypto Trading Platform New York Attorney General Letitia James took legal action Wednesday to shut down […]

Xem chi tiết: US Authorities Take Action to Shut Down Crypto Trading Platform Allegedly Defrauding Thousands of Investors

South African Taxpayers Who Fail to Disclose Income From Cryptocurrency Trading Face Possible Jail Time

According to a report, the South African Revenue Service (SARS) has sent out audit requests to taxpayers asking them to disclose their cryptocurrency trades and purchases. Taxpayers that fail to correctly disclose their income from bitcoin or other cryptocurrencies may be “liable to a fine or imprisonment for up to two years.†SARS Tracking Non-Compliant […]

Xem chi tiết: South African Taxpayers Who Fail to Disclose Income From Cryptocurrency Trading Face Possible Jail Time

Goldman Sachs Sees Bitcoin Market Becoming More Mature

Goldman Sachs’ global head of commodities research sees the bitcoin market becoming more mature. “The key to creating some type of stability in the market is to see an increase in the participation of institutional investors,†he detailed. Meanwhile, the price of the cryptocurrency soared on Thursday, regaining much of the losses from the beginning […]

Xem chi tiết: Goldman Sachs Sees Bitcoin Market Becoming More Mature

German Stock Exchange’s Crypto Trading App Surpasses $1 Billion Volume This Year

Cryptocurrency trading on the app provided by Germany’s second-largest stock exchange, Boerse Stuttgart, has hit record volumes. One billion euros in cryptocurrencies have been traded on the exchange’s crypto trading app, Bison, so far this year. 1 Billion Euros Crypto Trading Volume Germany’s second-largest stock exchange, Boerse Stuttgart, announced Monday that its cryptocurrency trading app […]

Xem chi tiết: German Stock Exchange’s Crypto Trading App Surpasses $1 Billion Volume This Year

Ripple’s Asia Pacific Business Flourishing Despite SEC Lawsuit, Says CEO

Ripple chief executive officer Brad Garlinghouse said Friday that the company’s business in the Asia-Pacific region has not suffered from the ongoing regulatory issues in the U.S. Ripple’s Business in Asia and Japan Sees Growth Ripple is facing a $1.3 billion lawsuit from the U.S. Securities and Exchange Commission (SEC). In December, the SEC charged […]

Xem chi tiết: Ripple’s Asia Pacific Business Flourishing Despite SEC Lawsuit, Says CEO

Personal Finance Expert Suze Orman Says ‘I Love Bitcoin’ — Advises How to Buy BTC, Praises Paypal

American financial advisor Suze Orman says she loves bitcoin. She has provided some advice on how to invest in the cryptocurrency a month, noting that she prefers to buy bitcoin through Paypal’s crypto service because the payments giant has made it easy to do so. Suze Orman Loves Bitcoin Suze Orman said she loves bitcoin […]

Xem chi tiết: Personal Finance Expert Suze Orman Says ‘I Love Bitcoin’ — Advises How to Buy BTC, Praises Paypal

Goldman Sachs Sees Huge Institutional Demand for Bitcoin — 76% of Clients Say BTC Price Could Reach $100K This Year

Global investment bank Goldman Sachs is seeing huge institutional demand for bitcoin with no signs of abating. A survey of Goldman’s institutional clients shows that 61% expect to increase their cryptocurrency holdings. Meanwhile, 76% say the price of bitcoin could reach $100,000 this year. Goldman Sachs Sees No Signs of Institutional Demand for Bitcoin Abating […]

Xem chi tiết: Goldman Sachs Sees Huge Institutional Demand for Bitcoin — 76% of Clients Say BTC Price Could Reach $100K This Year

A Crypto-Infused Professional Sports League: Billionaires Form a Blockchain Advisory Committee for the NBA

A number of National Basketball Association (NBA) team owners have formed an NBA blockchain advisory committee for the American professional basketball league. The advisory committee is composed of well known billionaires and blockchain advocates who own the teams the Nets, Mavs, Wizards, Celtics, Kings, and Jazz. Billionaire NBA Team Owners Invoke a Blockchain Advisory Committee […]

Xem chi tiết: A Crypto-Infused Professional Sports League: Billionaires Form a Blockchain Advisory Committee for the NBA

Selling Social Media Posts for $1.5 Million? Blockchain-Certified Tweet Sales Spark NFT Controversy

JP Morgan Poll: 22% of Investors Say Their Institutions Likely to Trade or Invest in Cryptocurrencies

The Many Facts Pointing to Cypherpunk Len Sassaman Being Satoshi Nakamoto

Indictment Order Issued Against Leaders of the Geek Group for Their Role Using BTC in an Illegal Money Transmission Business

Russian Court Orders Mining Firm Cryptouniverse to Face New Trial on Fraud

Taraxa Wants to Put Every Informal Transaction on the Record, Unveils Details About the Upcoming TGE

John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

$1 Million per BTC in 10 Years: ‘In Terms of Dollars Bitcoin Is Going to Infinity,’ Says Kraken CEO