As bitcoin recovers, the market capitalization of cryptocurrencies has surpassed $2 trillion for the first time since May.
- For the first time since May, the entire value of the cryptocurrency market has surpassed $2 trillion.
- On Saturday, it reached $2.02 trillion before falling slightly to $1.96 trillion on Sunday.
- Bitcoin, ether, and other tokens have risen in value in recent weeks as investors have returned.
After a robust comeback in bitcoin and other tokens, the cryptocurrency universe’s market value has surpassed $2 trillion for the first time since May.
According to Coinmarketcap, the total value of all cryptocurrencies hit $2.02 trillion on Saturday. It remained at that level until Sunday when it fell marginally to $1.96 trillion. Bitcoin has a market worth of $863 billion, whereas ether has a market cap of $370 billion.
Cryptocurrencies have had a crazy year. They soared in the first few months of 2021 as governments injected money into the economy, but plummeted in May and June when Tesla CEO Elon Musk criticized bitcoin’s energy usage, and China clamped down on the tokens
However, the market has found fresh life in recent weeks, with bitcoin surging from around $30,000 in July to about $46,000 on Sunday.
Analysts have struggled to pinpoint why the asset class has recovered. Some have claimed that Elon Musk’s words have acted as a trigger once more. He stated at a bitcoin conference in July that Tesla is likely to accept bitcoin as payment once it is more environmentally friendly.
TrendSpider’s principal market analyst discusses the technical indications that indicate bitcoin and ether will reach all-time highs in the next five months.
Despite the spring price reductions, institutions appear to have remained interested. According to an insider, JPMorgan has given its financial advisers the go-ahead to allow all of its wealth-management customers access to bitcoin funds.
Altcoins like ether and Cardano’s native currency Cardano(ADA) have also surged in recent weeks. A significant network improvement has helped ether, the second-largest cryptocurrency, rise from around $1,800 in July to $3,156 on Sunday.
Ada has risen in recent days, owing in part to the anticipation of future network upgrades. In July, the token was worth less than $1.10, but it was worth $2.10 on Sunday.
Despite rising regulatory concerns, cryptocurrencies have recovered. Global watchdogs are becoming increasingly worried about crypto derivatives exchanges such as Binance, and the US Securities and Exchange Commission has stated that it wants tighter regulation of the crypto ecosystem.
