The cryptocurrency market touched yet another milestone today after Bitcoin’s market cap surged to hit $1 trillion for the first time ever. The said surge accompanied a similar hike in price, with the cryptocurrency’s value climbing to hit $53,936, at press time.
Towards the end of January, when the value of Bitcoin dropped close to $30,000 again, the market cap depreciated from $760 million to $600 million. However, as the price began to hike again, the market capitalization also rose. In fact, when the value of BTC hit its ATH of over $52,500 recently, its market cap was hovering around $983 billion. Thanks to the aforementioned hike, however, both its price and market cap have surged.
Meanwhile, the rest of the altcoin market is also marching higher, with the hikes in the cryptocurrencies’ values accompanying a similar increase in market cap.
Interestingly, Bitcoin’s market cap has been speculated to hit $1 trillion before. For instance, on 12 February, Binance had revealed that the fully diluted market cap for Bitcoin had broken past $1 trillion when BTC was priced around $47,000. In fact, Tim Draper too was one to speculate that the market cap will hit $1 trillion when the crypto-asset’s price hit an ATH of over $52k.
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.”
With the digital asset surpassing the $1 trillion mark, optimism is understandably running high. It must be noted, however, that such growth needs to be sustained so that it has any chance of overhauling Gold’s market cap of $10 trillion.
It’s worth mentioning that while Bitcoin had indeed touched new highs on the price charts, its weighted social sentiment hasn’t exactly always corresponded. This metric would be crucial if Bitcoin intends to surpass Gold’s $10T market cap.
Source: Santiment
