Last Saturday (14), bitcoin (BTC) was traded for over US$ 48,000, also boosting the entire sector. As a result, the cryptocurrency market surpassed US$ 2 trillion in capitalization. These values were last reached in mid-April and May, respectively, just before digital asset prices began to plummet in the face of massive sell-offs and restrictive policies being implemented around the world, particularly in China.
Bitcoin hits highest prices in the last 3 months
According to data from CoinMarketCap, a market monitoring platform, the price of bitcoin (BTC) surpassed US$ 48,000 on Saturday and reached the same level again on Sunday. After fluctuations, the cryptocurrency went through new falls, trading for about US$ 46,000 on Monday.
“I believe this (the rise of bitcoin) is the result of massive accumulation since the asset was trading between $29,000 to $30,000,” said Vijay Ayyar, head of business development at the Luno cryptocurrency exchange, in an interview with CNBC. For him, the huge devaluation of the digital currency that took place throughout May and June would also have opened up opportunities for investors to buy it, raising prices gradually.
Cryptocurrency market capitalizes $2 trillion
This weekend’s valuation was not only very significant for bitcoin, which again demonstrates that there is growing buying demand, but it also influenced the prices of several other assets. Ether (ETH), the second-largest cryptocurrency by capitalization, rose to above $3,300 on Saturday and continued to appreciate until Sunday, even with fluctuations. Already the dogecoin (DOGE), the famous meme currency, accumulates more than 10% high in the same period.
As a result, the entire cryptocurrency market returned to a milestone that had not been seen since mid-April: US$ 2 trillion in total market value, as shown by data from the CoinMarketCap. Bitcoin is still the main contributor to that number, with a 44% dominance rate, followed by ether, with a 19% share.
Crypto sector is more robust and mature
In general, the market is less influenced by any news. While Elon Musk’s tweets and speculations about possible policies restricting the use and trade of cryptocurrencies were more than enough to move the entire market up or down over the first half of 2021, today the situation is different. Even with the approval of new rates and tighter fiscal controls on digital assets as part of the US Senate infrastructure project passed last week, bitcoin has remained relatively stable.
The US government’s attitude towards bitcoin and digital currencies can be seen as problematic for many users and companies operating in the cryptocurrency market, but there is also a more optimistic view that indicates more regulations and recognition by authorities around the world they legitimize technology and digital money, either as a risky investment or as a bargaining chip.