Is Bitcoin Hit the $1 Trillion Market capitalization?
Bitcoin has had a significant year so far (and 2021 could be even more significant). Bitcoin's higher than multiplied in price through 2020 and this week exceeded its 2017 market capitalization, the combined price of all devised BTC tokens.
The bitcoin rate has added around 50% this month, shooting toward its all-time high of about $20,000 per BTC and accelerating its market cap briefly above $350 billion, driven on by a flow of institutional interest in BTC.
Bitcoin dealers and investors are now turning to what will occur if BTC does lead to break its all-time high—with one analyst predicting it will be the start of a two-year run to a $1 trillion BTC market cap.
"$20,000 bitcoin is the initial barrier toward a $1 trillion market cap," Bloomberg Intelligence senior commodity strategist Mike McGlone said through Twitter beside a chart explaining how he believes BTC could touch the milestone before the end of 2022.
If bitcoin were to touch a $1 trillion market cap, it would indicate an expansion of today's BTC price of nearly 200%—making one BTC token value a whopping $50,000.
"The digital version of gold but with more-limited supply and a history of adding zeros seems to be in an early price-discovery stage and may just continue its rise in 2021," McGlone stated, adding: "Mainstream adoption is rising."
Bitcoin has recovered hard since falling to below $4,000 amid the COVID-19 crash in March, supported by some of Wall Street's largest banks and investors turning to BTC as well as payments giant PayPal rolling out bitcoin buying and spending services to its 350 million users.
Some think BTC touching its all-time high market cap this week means more than the BTC price touching $20,000.
"With all the buzz surrounding bitcoin reaching $18,000, I think the more interesting development is the market cap of bitcoin being at an all-time high," Peter Smith, the chief executive of bitcoin and crypto exchange and wallet provider Blockchain.com, stated via email.
"Specifically, that's interesting because not only are more and more people trusting their assets to crypto, but more capital is funded in BTC than ever. In these unpredictable times, it's hugely confirming for the reserve asset of crypto."
Still, not everyone in the BTC and crypto community is convinced the bitcoin rate is about to start a run toward a $1 trillion market cap.
"It seems more and more like we are hitting a BTC tipping point," John Kramer, a trader at Hong Kong-based market maker GSR, stated via email, pointing to well-known fund managers and institutional investors "re-examining their bitcoin theses."
"That's not to say that the value will rocket past $19,000; in fact, a cool down is to be expected. While BTC has been fast to get back on peoples' radars, this hike shows few marks of irrational exuberance."
Kramer, who believes the crypto community is "far more ready to accommodate increasing interest and various investment perspectives than it was in 2017," is, though, still bullish on bitcoin, saying it's still "early opportunities in this bull market."
Unlike bitcoin's 2017 bull run, which marked the price growth from under $1,000 at the start of the year to about $20,000 by Dec, the consent between the crypto community is that 2020's assembly is mainly institutional-driven, with the retail investors that supported bitcoin reach $20,000 three years before still on the sidelines.
"Bitcoin has gotten to a place where institutional investors, banks, and family offices are legitimately pondering involvement as a defence against currency devaluation," Alex Mashinsky, the chief executive of Celsius Network a crypto lending platform, which holds about $2 billion of cryptos, stated via email. Mashinsky expects the BTC price to touch $30,000 by 2021.
"Bitcoin has gotten to a place where institutional investors, banks, and family offices are legitimately pondering involvement as a defense against currency devaluation," Alex Mashinsky, the chief executive of Celsius Network a crypto lending platform, which holds about $2 billion of cryptos, stated via email. Mashinsky expects the BTC price to touch $30,000 by 2021.
"In 2017 it was clear retail early-adopter consideration. Because big players, like Line and PayPal, are involved this go around, we can assume more stability than the 2017 bubble. This is not a gold rush anymore; it's a great investment."
More information about company and crypto license registration in Estonia: www.consulting24.co
Consulting24 OÜ is the fastest-growing consultancy company in Estonia by volume and has obtained over 300 crypto licenses. We have both tailored and ready-made companies for sale. Consulting services cover: company registration in Estonia, acquire a crypto license, open crypto-friendly banking, local/director AML recruitment, accept debit/credit card payments, draft terms & conditions.
If you are interested in services, contact us mardo@consulting24.co
#investing #investingincrypto #digitalcurrency #bitcoin #crypto #cryptocurrencyconsulting #bitcoinvalue #blockchain #cryptocurrencyconsultingfirm #consulting24 #estonianmafia #estonia #companyinestonia #companyformation #companysetup