Today was definitely a good day for cryptocurrency investors, as Bitcoin rose more than $5,000, while the market achieved the $1 trillion market cap. Obviously, this led to many talks about the current crypto rally which could help many other cryptocurrencies reach all-time highs.
Bitcoin remains the ‘engine’
The price of BTC reached $57,492, translating into an 8.77% growth over the past 24 hours. However, the interesting part is that this new milestone means that after less than two months into 2021, Bitcoin registers a 95.4% gain – almost double than its value at the end of 2020, of almost $29,000.
Analysts believe that Bitcoin’s growth can be attributed to the increasing demand from buyers who are trying to hedge against inflation, while governments keep spending and central banks print money, in an attempt to help the economies get through the coronavirus pandemic.
“Through the insatiable buy-side pressure from exchange-traded fund (ETF) issuers, closed-end funds, and large public corporations adding Bitcoin to their positions, demand is massively outstripping supply,” believes John Willock, Blocktane’s chief executive.
It all started on Twitter
This whole growth wave, if we can call it like this, was started earlier in February, when Tesla announced that they have purchased $1.5 billion worth of cryptocurrency. Also, Elon Mush added “bitcoin” to his Twitter bio and investors lost their minds, taking this as a huge endorsement.
These signals basically started a round of “who’s next?” in terms of investing in Bitcoin and everybody is now looking forward to seeing who’s going to be the next main street investor in cryptocurrency.
Finally, Bitcoin’s run has now ‘affected’ many other coins, with many of them going up this morning and a big number registering double-digit percentage gains. Besides Ethereum, tokens like Polkadot (DOT), Cardano (ADA), Uniswap (UNI), or Nem (XEM) were among this weekend’s major gainers.