With Bitcoin surging over $40,300, increasing the total market of cryptocurrency over $1 trillion. It is being marked as the new face of the trade market. The Bitcoin rival, Ethereum also reached its highest value in two years and was traded for over $1,200. Ripple is also gaining back its value.
Bitcoin surged above $40,000 on Thursday with a 12% increase in its value. Bitcoins fortune is helping the whole cryptocurrency market in attracting big investors. Institutions are also taking cryptocurrencies seriously now. The cryptocurrency market is now bigger than ever and has raised above $1 trillion.
Bitcoin has seen huge investment in the last couple of weeks, especially from institutional investors. In the past ten months, Bitcoin has risen from being traded for $5,000 to $40,000 which is unreal for many.
Besides all factors of institutional investments and Bitcoin reaching its maximum limit, there is another reason for its current success. The success can be attributed to the demand for a decentralized or not central bank controller asset than any other reason. Currently, it can be observed in the market instead of been used as a means of profit through buying and selling. Bitcoin is continuously being purchased as a medium of saving finances with low chances of having losses.
Nick Cawley of DailyFx said that currently, the buying interest in Bitcoin is much more than ever. Even a sell-off of Bitcoin is seen as an opportunity to buy in the market by someone else. He added that such interest, currently, is going even higher.
With capital of above $1 billion, the crypto market is almost half of the value of the world’s biggest company. Apple is so big that are called even more valuable than the complete Swiss economy. Now the Swiss banks have an amazing reputation in the banking industry, having the most finances and the largest gold vaults.
Nothing is currently stopping Bitcoin from breaking its own record every other day. The surge was expected by many after the latest approval from the U.S OCC. Through their approval, the OCC allowed the financial institutions to utilize blockchain networks for payments and other activities.
The new KYC and AML policies have helped cryptocurrencies become highly transparent and has revived investors trust in them. Previously there were reservations of investors regarding fraud and malpractices in the trade of cryptocurrencies but that reputation has been turned.
Statement one of the executives of JPMorgan cannot be overlooked in discussing who and what raised the interest of investors in Bitcoin. It was said by the executive that he believed that Bitcoin will be traded soon for upto $146,000.
The market is overall influenced by the rising interest. The runner-up in the crypto race Ethereum has also gained over 800% in the last couple of months. Ethereum is being traded for as high as $1,230 per coin.
Ripple Labs although have been in hot waters since the complaint filed against it by U.S Securities and Exchange Commission. It is also regaining its position in the trade market. Ripple Labs XRP’s values doubled in November. Following the complaint by SEC ripple lost half of its gained value in the very next month. The Ripple Lab’s currency however gained its lost value and again doubled since the new year.
With all these highly volatile cryptocurrencies, Litecoin and Cardano still maintain their status of being Stablecoins of the crypto market. These two cryptocurrencies are backed by regular currencies therefore are less volatile as compared to other de-centralized cryptocurrencies.