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Market cap of cryptocurrencies surpasses $1 trillion, bitcoin jumps 9% to trade above $37k

The stellar start is on the back of a landmark year in which bitcoin rose more than 300 percent, gaining almost 50 percent in December alone.

January 07, 2021 / 04:26 PM IST

Cryptocurrencies are rising and how. The total value of the cryptocurrencies passed the $1-trillion mark for the first time on January 7.

Bitcoin, which represents about 69 percent of the total market, rose over 9 percent, surpassing the $37,000-mark for the first time.

Interest in cryptocurrencies has soared recently, with investors viewing them as a hedge against inflation and an alternative to the depreciating dollar.

At the time of writing this copy, bitcoin was trading down 8.56percent at $37,050.34. It touched a 24-hour high of $37,739.08, which is also its lifetime high, and a 24-hour low of $33,660.35. The premier cryptocurrency has surged 27.76 percent in the new year, which is in its seventh day.

The stellar start is on the back of a landmark year in which bitcoin rose more than 300 percent, gaining almost 50 percent in December alone.

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According to investment bank JP Morgan, the premier cryptocurrency has emerged as a rival to gold and could trade as high as $146,000 if it becomes established as a safe-haven asset.

"Bitcoin’s competition with gold has already started in our mind," the Wall Street bank’s strategists said in a note, citing recent $7 billion outflows from gold and more than $3 billion of inflows into the Grayscale Bitcoin Trust.

Former Merrill Lynch economist and long-time bear David Rosenberg said the sharp rally had pushed the cryptocurrency to the "bubble" zone.

In an interview to CNBC, Rosenberg said, "The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal."

According to him, gold offered better value at the current juncture. "It has 1/5 of the volatility that bitcoin does," Rosenberg said. "I’ve been very bullish on gold, and I remain bullish on gold."
Moneycontrol News
first published: Jan 7, 2021 04:26 pm

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