Bitcoin Tops $1 Trillion Market Valuation, Breaks $58,000

Bitcoin Tops $1 Trillion Market Valuation, Breaks $58,000

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Key Takeaways

• Bitcoin soars above $1 trillion and remains well bid on Monday
• European markets and US futures lower

The world’s number 1 cryptocurrency continues to reach new records at breakneck speed. Bitcoin hit a new all-time high yesterday as it smashed the $58,000 mark and propelled its market value above $1 trillion for the first time. The soaring price of the cryptocurrency jumped some 10% over the weekend and more than 20% in the last seven days. Bitcoin’s price has now subsided slightly but remains near the all-time high, currently at $56,500 with a market cap of $1.05 trillion. So far in 2021, the apex coin has appreciated by over 85%.

Ethereum, the second most valuable cryptocurrency, is also reaching new highs alongside its peer. Ethereum’s market value soared above $200bn as its price spiked to as much as $2,000 over the weekend. On Monday, the market remains in favor of Ethereum, keeping its price around $1,900.

The parabolic move in bitcoin, Ethereum, and the overall crypto market comes off the back of increased support for large-scale adoption as retail traders, institutional investors and big corporations are hopping onto the bandwagon. As the price of bitcoin reaches higher, it becomes increasingly difficult to produce the wild returns the market is used to witness. To move the price of bitcoin to 10% at the current market price, it will require an inflow of $100bn to be injected into the coin. At the present valuation of $1tn, bitcoin is bigger than Tesla, currently valued at $750bn and rivals the valuation of Google, $1.4tn. The whole market capitalization in the cryptocurrency space is now above $1.7tn and beats Amazon, which is worth $1.64tn and it’s on the way to eclipse Microsoft, currently valued at $1.8tn.

Widespread Vaccination Targeted in the US

Tesla chief Elon Musk, who’s been strongly active in the crypto world recently, said the prices of bitcoin and Ethereum “do seem high”. Last week, the billionaire engineer called bitcoin a “less dumb” form of cash. Tesla joined the bitcoin club in early February when it disclosed it has plowed $1.5bn of its cash reserves into Bitcoin. It now looks like Tesla is on a trajectory to make a bigger profit from bitcoin investments than from selling electric vehicles. Allegedly, Tesla has turned a profit of about $1bn or more over the past month. In light of this purchase, the SEC has vowed to investigate the circumstances surrounding the investment.

Elsewhere, the Biden administration is set to dramatically ramp up the coronavirus vaccine program. The US approaches 500,000 deaths from Covid-19 almost a year after the first death was reported. Since the approval of the vaccine, about 75 million doses have been distributed across the states, 63 million of which have been injected. The US is set to receive 145 million doses by April and 200 million are expected by the end of May with an additional 200 million more by the end of July.

As the European session kicked off the week sharply lower, US equity futures are also flashing red. The German market is down over 1.00% in early trading, followed by the French CAC40, lower by roughly 0.90%. The UK’s FTSE100 is down by 0.80%. Futures tied to the Nasdaq Composite Index point to a lower open by 1.30%, followed by S&P futures and Dow Jones futures, each down by about 0.80%.