Bitcoin rise makes cryptocurrency market reach R$ 10 trillion

For the first time in three months, the market capitalization of cryptocurrencies rose to more than $2 trillion – about BRL 10.5 trillion in direct conversion. According to the data of the CoinMarketCap, this movement is directly linked to the increase in the price of Bitcoin.

In April, cryptocurrencies topped the $2 trillion mark before currency exchange company Coinbase went public. At the time, Bitcoin alone contributed to the $1 trillion capitalization.

Alone, Bitcoin contributes a large part of the market's valuation.Alone, Bitcoin contributes a large part of the market’s valuation.Source: Dmitry Demidko/Unsplash/Reproduction

The recovery of cryptocurrencies occurs after the market is affected by several obstacles. In May, the US considered an increase in the digital capital gains tax and the Chinese government began cracking down on mining operations.

As a result of these actions, Bitcoin had a sharp drop to trade for less than $30,000. Then, the capitalization of cryptocurrencies also plummeted during the period.

The recent recovery of the currency, whose price is at US$ 46,400 this Monday (16), pushed the market to above US$ 2 trillion. However, Bitcoin needs to reach $53,000 to recover the individual capitalization of $1 trillion.

Ethereum and Bitcoin collaborate with the enhancement of cryptocurrencies.Ethereum and Bitcoin collaborate with the enhancement of cryptocurrencies.Source: Pierre Borthiry/Unsplash/Reproduction

Ethereum Recovery

The rise of Bitcoin was also helped by Ethereum, a cryptocurrency that also partially recovered from its own price drop. After hitting $1,776 in July, digital currency is now priced at $3,293 – about R$17,285.

Although the market continues to grapple with obstacles, surpassing the $2 trillion milestone shows that cryptocurrencies are not a passing thing. Remembering that technically the biggest peak was around US$ 2.5 trillion in May.