On Tuesday, the price of the cryptocurrency increased which exceeded Bitcoin’s value of $1 trillion.
According to CoinDesk, the price of the digital coins enhanced on Tuesday, and thus the market capitalization crossed $1 trillion in the mid-morning trade Singapore time.
Almost at 11.35 a.m. Singapore time, it is found that Bitcoin has increased the gains within 24 hours to $54,029.85 which is 7% higher than the same time a day before. However, Bitcoin since then has pared with some of those gains.
It is the second time that bitcoin’s value has enhanced by $1 trillion after hitting the milestone for the first time on 19th Feb. Well, Bitcoin’s market capitalization held above $1 trillion for several days, before its falls below the mark.
Although bitcoin is right now at its high which is $58,332.36, which has seen a huge rally. However, in this year, digital currency is higher by 80% and 570% higher in the last 12 months.
Bitcoin’s rally contributes to several factors which involve participation from the larger institutional investors and some of the notable purchases from corporations. Square, Microstrategy, and Tesla are op companies that make a purchase of the bitcoins.
As per the CoinDesk, on Sunday, a Chinese appmaker Meitu said that it had not only purchased bitcoin but another cryptocurrency called ether. Ether is a cryptocurrency that runs on the Ethereum network that was trading at $1,836.73 at almost around 10:41 a.m. Singapore time which is nearly 7% from the day before.
Currently, the companies are making procurements in the cryptocurrency space. On Monday, PayPal mentioned that it will soon avail cryptocurrency security firm Curv.
Well, the followers of bitcoin often prefer “digital gold”, which is a hedge against the rise and probable “safe-haven” asset. This is where the investors can save their money during political or economic turmoil.
Even some argue that with a loose monetary policy like low-interest rates and asset purchases by the central banks around the world. It erodes the value of fiat currencies like the U.S. dollar as well as bitcoin offers the best alternative to invest in.