The headlines of Fox Business Flash are here. See what clicks on FoxBusiness.com.
NEW YORK – The market capitalization of the cryptocurrency reached a high of $ 2 trillion on Monday, according to data and market researchers CoinGecko and Blockfolio, as gains over the past few months have driven demand from both institutional and retail investors.
By noon, the crypto-market capitalization was $ 2.02 billion.
The boom was led by bitcoin, which reached its own milestone by holding a market capitalization of $ 1 billion for one week. Bitcoin last rose 1.4% to $ 59,045. Since reaching a lifespan of more than $ 61,000 in mid-March, bitcoin has been trading in a relatively narrow range.
BITCOIN HIT $ 60,000 IN HEIGHT RECORD
Analysts have said that as long as bitcoin stays above $ 53,000, it will be able to maintain its market capitalization of $ 1 trillion.
Ethereum, the second largest cryptocurrency in terms of market capitalization, rose 1.3% to $ 2,103. Its market value on Monday was $ 244 billion. It hit a record high of $ 2,144.99 last Friday.
“Momentum and interest have expanded beyond bitcoin and ethereum,” said Paolo Ardoino, chief technology officer at crypto exchange Bitfinex.
“As the industry continues to mature, we expect more blockchain-based applications to be introduced to the world, and to coincide, an increase in interest around other alternative assets … as it becomes more market-ready,” he added. .
Blockchain data provider Glassnode said in a research report that the fact that bitcoin has a market capitalization of $ 1 trillion for a week is a “strong vote of confidence for bitcoin and the asset class of the cryptocurrency as a whole.”
It added that activities on the chain continue to strengthen the robust position of bitcoin, with a volume equal to more than 10% of the circulating supply trading above the trillion of $ 1 trillion.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
Also on Monday, Grayscale Bitcoin Trust, a $ 35 billion investment instrument that owns bitcoin, said it remains committed to the conversion to an exchange-traded fund. In a blog post, Grayscale said the timing of its transition depends on the regulatory environment.
Bitcoin has risen more than 100% this year, while ethereum has risen almost 190%. Both have surpassed the traditional asset classes on a large scale through the entry of mainstream companies and large investors into the cryptocurrency world, including Tesla Inc and BNY Mellon.