Crypto market value surpasses $ 3 trillion for the first time – News

Bitcoin bounces back above $ 66,000 on Monday, near all-time high after 5% jump

A representation of the Bitcoin virtual currency is seen in front of a stock chart. – Reuters archive photo

Posted: Mon 8 Nov 2021, 05:14 PM

Last update: Mon 8 Nov 2021, 9:34 PM

According to the latest calculations, Cryptomarket’s valuation crossed $ 3 trillion for the first time on Monday, as traditional investors increasingly join the market.

“The value has reached $ 3,007 trillion,” said CoinGecko, which tracks the prices of more than 10,000 cryptocurrencies.

Bitcoin climbed back above $ 66,000 on Monday, near its all-time high after jumping five percent. The world’s largest cryptocurrency hit a record high of $ 66,000 last month after taking another step towards mainstream status.

Ethereum, the second largest cryptocurrency by market value, hit a record high of $ 4,768 on Monday.

Large scale acceptance

Vijay Valecha, Chief Investment Officer, Century Financial, Cryptos’ gains are fueled by its widespread acceptance among the investment community.

“Major cryptocurrencies like Bitcoin and Ethereum are trading with a bullish tone, and they are bought on lows,” Valecha told the Khaleej Times on Monday.

Coin’s latest report on institutional money flows in crypto markets highlights the growing relevance of this space. According to the latest figures as of November 1, the total flow of institutional money into the space was $ 8.7 billion, up 30% from the previous year.

“The Coinshares report tracks money flows between major vendors like Grayscale, Coinshares, 3iQ, 21 Shares, Purpose & Proshares to name a few. Bitcoin continues to lead the way with its cumulative inflows of $ 6.37 billion. Total institutional flows for Ethereum stood at $ 1.05 billion, while other digital assets like Solano, Cardano and Polkadot recorded inflows totaling $ 15 million, $ 5 million, and 6.2 million, respectively. million dollars, ”Valecha said.

Crypto jobs in demand

Valecha highlighted another interesting aspect of the crypto surge around the world.

“In what can be seen as large US tech giants officially adopting cryptos, Amazon posted a job posting for the senior digital asset specialist. The job description vaguely indicates the giant likely to adopt and even integrate mainstream crypto, CBDC, NFT with e-commerce platforms. This will be a big win for the crypto bulls as Amazon allows cryptos for trading will likely mean other tech giants will further explore the use cases of digital currencies, ”he said.

Over the past 12 months, some of the biggest and reputable banks on Wall Street and Europe have added several blockchain / crypto-based jobs, ranging from product development to integrating third-party payments with vendors. ‘digital exchanges and wallets.

ETF triggers rally

Investors see the ETF as a more accessible vehicle that puts Bitcoin within reach of even more stakeholders. They said the current uptrend in cryptos began after the launch of a Bitcoin futures exchange-traded fund, a type of financial instrument, on the New York Stock Exchange in October.

“The crypto market is growing at breakneck speed. Part of it is speculation, of course, but part of it is real, “SwissQuote analyst Ipek Ozkardeskaya told AFP.

“Crypto is now making its way into mainstream finance and everyone is on board,” she added.

Some investors view cryptocurrencies as a hedge against inflation, which is rising around the world as economies reopen after pandemic lockdowns.

Hargreaves Lansdown market analyst Susannah Streeter said Bitcoin is rebounding higher again, near all-time highs.

“The recent boom in crypto … seems in part to have been caused by the build-up of investors, viewing it as a hedge against inflation,” Streeter said.

No more than 21 million Bitcoin can be created, which allows its price to trade well above its rivals, but cryptocurrency trading in general has been found to be extremely volatile, with massive price fluctuations. which are commonplace.

Growing interest in the crypto ecosystem

Ola Lind, Managing Director of FTFT Capital, said cryptos are booming due to major developments in the DeFi and NFT markets.

“DeFi services operate primarily on the Ethereum blockchain. Advances in decentralized exchanges and NFTs are accelerating now and at the same time there is a huge demand to buy crypto as the market sells little, ”Lind said.

Additionally, there is growing interest in the crypto ecosystem and its potential functionality. As more countries support the adoption of crypto assets, the demand for crypto-based assets and services will increase in the years to come.

“Maybe we should expect some downtime in the coming months, but as developers improve their blockshian-based services, the market is coming back stronger as seen before.”

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About Tammy N. McFarlane

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