Australia markets closed
  • ALL ORDS

    6,720.40
    -26.10 (-0.39%)
     
  • ASX 200

    6,539.90
    -28.20 (-0.43%)
     
  • AUD/USD

    0.6818
    -0.0087 (-1.25%)
     
  • OIL

    108.46
    +2.70 (+2.55%)
     
  • GOLD

    1,812.90
    +5.60 (+0.31%)
     
  • BTC-AUD

    28,267.62
    -404.46 (-1.41%)
     
  • CMC Crypto 200

    420.84
    +0.70 (+0.17%)
     
  • AUD/EUR

    0.6533
    -0.0048 (-0.73%)
     
  • AUD/NZD

    1.0973
    -0.0077 (-0.70%)
     
  • NZX 50

    10,753.16
    -115.54 (-1.06%)
     
  • NASDAQ

    11,585.68
    +81.96 (+0.71%)
     
  • FTSE

    7,168.65
    -0.63 (-0.01%)
     
  • Dow Jones

    31,097.26
    +321.83 (+1.05%)
     
  • DAX

    12,813.03
    +29.26 (+0.23%)
     
  • Hang Seng

    21,859.79
    -137.10 (-0.62%)
     
  • NIKKEI 225

    25,935.62
    -457.42 (-1.73%)
     

Bitcoin’s Price Surge Accelerates After Passing Milestone of $1T Market Value

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Bitcoin’s recent price surge pushed the largest cryptocurrency past $1 trillion in market capitalization, a threshold that might prove to be a catalyst for higher prices rather than a barrier or peak.

At press time, bitcoin was trading at $54,646.46, up 5.30% in the past 24 hours. It is only slightly down from the new all-time high at $54,711.32

“In many ways, $1 trillion marks an interesting focal point in which bitcoin goes from a magic internet money meme into a Wall Street, institutionally recognized and investable asset,” said Andrew Tu, an executive at quantitative trading firm Efficient Frontier.

Related: Crypto Long & Short: Interest in DeFi Is Surging. You Can Thank GameStop

At the same time, bitcoin’s one-month implied volatility – investors’ expectation of how turbulent prices will be over the next four weeks – also dropped on Friday, according to data source Skew.

“The bulls have taken hold of the markets,” said Denis Vinokourov, head of research at digital assets prime broker Bequant.

Many factors in the past week have contributed to bitcoin’s latest rally, including U.S. Treasury Secretary Janet Yellen pushing the Biden Administration’s proposal of $1.9 trillion stimulus package, MicroStrategy’s announcement it is boosting its bitcoin stash again and money manager BlackRock’s “dabbling” in cryptocurrency.

While every piece of news seems to benefit bitcoin and cryptocurrency as a whole, some are warning about potential risks of people taking profits and pushing down bitcoin’s price.

Related: Bitcoin Scales $58K for First Time; YTD Gain Over 98%

“With traders appearing to now expect announcements like these to keep coming, we may see a pullback in the near future, perhaps this weekend,” Guy Hirsch, U.S. managing director at eToro, said. “It would not be surprising to see bitcoin drop briefly below $50,000 while some people and firms lock in profits before another run above this all-important psychological level.”

Related Stories

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting