Cryptocurrency market capitalization exceeded $1.3 trillion
In just a week, the capitalization of the cryptocurrency market increased by $300 billion and exceeded $1.3 trillion on February 8 after Tesla reported on investing $1.5 billion in Bitcoin.
The cryptocurrency market continues to reach new heights due to the influx of new investors. The overwhelming part of this growth came from Bitcoin, which reached $40,960 over the weekend, and today broke another record, reaching almost $45,000. BTC owes a large share of this growth to Elon Musk, who first “encouraged” investors on Twitter, and then his company Tesla announced the purchase of bitcoins for $ 1.5 billion. It is the largest purchase of cryptocurrency by a corporation to date.
Bitcoin soared to $20,000 for the first time after CME launched Bitcoin futures in December 2017. With the Chinese New Year approaching, many traders expect large price swings as Chinese citizens start selling bitcoin during the New Year holidays, causing its value to fall. But this year the tradition may be broken due to the inflow of investments from other countries.
The last days have turned out to be successful for the ether, which renewed its all-time high last week, reaching $1760. ETH fell slightly, but over the past six days, this cryptocurrency has not fallen below $1,500. Considering that the Chicago Mercantile Exchange (CME Group) launched trading in ETH futures contracts today, the volatility of this cryptoasset may increase. Such contracts will allow institutional investors to speculate on the price of Ether in both long and short positions.
Dogecoin also began to experience a surge in activity, as celebrities began to pay attention to this cryptocurrency. So, last week, Tesla founder Elon Musk jokingly called Dogecoin “the people’s cryptocurrency”. He was joined by American rapper Snoop Dogg. He posted a picture of himself on Twitter, where instead of a face he inserted a Shiba Inu dog, symbolizing Dogecoin.
The Tesla executive also jokingly responded by publishing a scene from The Lion King, as if Musk was holding Kiss musician Gene Simmons, and Snoop Dogg holding the dog.
Such interest in Dogecoin led to the fact that nothing but its image, an unremarkable coin entered the top ten leaders in terms of market capitalization. Over the past day, Doge has grown by another 10%, and the capitalization of the cryptoasset is already $9.8 billion.
Equity and futures markets are also growing rapidly. For example, futures on the Dow Jones, S&P and Nasdaq rose sharply after information emerged that US President Joe Biden’s proposal for $ 1.9 trillion for economic recovery could be implemented this month. This further fuels bullish sentiment in the market. According to a study by the cryptocurrency exchange Coinbase, many Americans spend the government subsidies they receive to buy bitcoin.
Recall that on the night of January 7, 2021, the capitalization of the cryptocurrency market for the first time in history exceeded $1 trillion.