Total cryptocurrency market cap exceeds $ 1 trillion for the 1st time
The total value of the cryptocurrency market now exceeds $ 1 trillion for the first time in the history of the industry.
The journey to this historic achievement has been fueled by governments, institutions and retail investors
Cryptocurrencies are emerging as solid alternative investments, despite regulatory concerns.
The cryptocurrency’s total market capitalization hit a record high of $ 1 trillion for the first time since its inception.
The journey to this accomplishment has been led primarily by the market’s premier cryptocurrency, Bitcoin (BTC), as institutional and retail investors continue to pour in.
Interest from governments was also a factor in reaching this record, as central banks around the world began to seriously explore the use of Bitcoin Profit technology for digital versions of their country’s currencies .
The cryptocurrency industry is establishing itself as a viable alternative investment by providing a technical framework for the future of money
This comes at a time when many traditional assets and strategies are still suffering from the effects of the COVID-19 pandemic.
Institutions bought cryptocurrency, especially Bitcoin, with a record amount throughout 2020. In December, for example, business analyst firm MicroStrategy revealed that over the past year, she had a position in Bitcoin worth over $ 425 million. She then announced that she had successfully secured $ 650 million in additional funding to bring her position to over $ 1 billion.
Grayscale Investments , a company that manages cryptocurrency investment funds, has seen its flagship fund, Grayscale Bitcoin Trust, reach more than $ 10.8 billion in assets under management. Most of that amount was added last year, says the company, in the heart of the considerable interest of its institutional clients.
Governments around the world have followed this trend, exploring how blockchain technology and cryptocurrencies can be used to create a futuristic monetary system. The “ digital yuan ” of the People’s Bank of China and the “ digital euro ” of the European Central Bank are perfect examples of this high level interest, with the digital yuan already being successfully tested.
Governments from the United States to Russia are exploring their own digital currencies and pushing for the adoption of cryptocurrency regulations, such as the “ STABLE ACT ” law.
When institutions and governments both invest in and explore the cryptocurrency industry, it’s no wonder the general public is once again throwing themselves on board.