Bitcoin surpasses $1 trillion in market value, ‘proving detractors wrong’

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February 22 2021
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Bitcoin’s latest run has seen its market value surpass $1 trillion, with an analyst highlighting it is bringing further legitimacy to the alternative currency space.

Bitcoin’s latest rally pushed its market value above US$1 trillion for the first time on Friday, shrugging off concerns of a market pullback.

At the time of writing, bitcoin’s year-to-date gain has surpassed 90 per cent, hitting US$58,148.31, CoinDesk figures show.

The digital currency’s rise has dwarfed its 2017 bull run when the crypto asset rose to over US$20,000, before losing 65 per cent of its value over the next 12 months.

The second-largest coin, ethereum, also saw a new record price, breaking through the US$2,000 for the first time and giving it a total value of $226 billion.

In total, following a strong week in crypto markets, crypto assets are closing in on $2 trillion in market capitalisation.

eToro crypto asset analyst Simon Peters said bitcoin surpassing $1 trillion market cap is a momentous moment for the alternative asset class.

“Despite being criticised only this week as a bubble waiting to burst and an ‘economic sideshow’, it has yet again proved its detractors wrong and broken another record,” he said.

“Of course, it can be volatile, but achieving such a large market cap is not to be sniffed at. This milestone demonstrates bitcoin’s growing power as it looks to disrupt the traditional financial landscape.”

Mr Peters opined the last few weeks have been a “turning point” for crypto assets, with large US businesses including Tesla, Mastercard and BNY Mellon lending their support to the asset class.

“For investors, it’s an exciting time, especially for long-term speculators who will have seen a 60 per cent surge just this month,” he said.

“There are warning signs that there may be a market correction on the horizon, but in the meantime, there seems to be no stopping bitcoin’s upwards trajectory.”

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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