Cryptocurrency Market Cap Crosses $1 Trillion As Bitcoin Soars Above $40,000

2 min read | January 08, 2021 09:31 PM AEDT | By Kunal Sawhney

Cryptocurrency Market Cap Crosses $1 Trillion As Bitcoin Soars Above $40,000

Bitcoin: Bubble Or Growth?

Bitcoin has quadrupled over the past one year. According to JPMorgan, so-called ‘digital gold’ could better US$ 146,000. The giant investor also estimates that in the long run bitcoin can compete with gold to achieve sustainable growth. However, the digital token is witnessing huge volatility as investors are yet to consider it a long-term investment option.

The virtual currency's price tumbled in early 2018, and by the end of that year, bitcoin was trading at US$ 4,000 per token. After that plunge, the digital coin was surrounded by volatility and uncertainty.

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Cryptocurrencies & Mainstream Investors

However, there’s seems to be a change in the perception of cryptocurrencies.

Many technology companies and digital banking systems are incorporating blockchain technology that runs cryptocurrencies like Bitcoin, Ethereum, Litecoin.

Year 2020’s unprecedented crypto rally, which has now spiraled into 2021, is driven by more mainstream and institutional investors. The largest crypto coin by market value, Bitcoin, started getting popular among bull investors last year. And these investors are putting their money in Bitcoin to hedge against inflation, and few of them are comparing it with gold.

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