This weekend, Bitcoin exceeded and broke all market expectations about what its next immediate value would be, showing new highs with values never before seen in the entire history of this cryptocurrency.
Since last week, Bitcoin (BTC) has sustained a parabolic and accelerated increase in its value, breaking all market expectations; And to date, it has not stopped growing. The price of the cryptocurrency No. 1 reached an all-time high of $58.640 USD recently; a new historical price that led its market capitalization to surpass the $1 trillion mark. Thus, the market capitalization of Bitcoin is exhibiting a record value in its history of no less than $1.080.567.862.273 USD ($1,08 trillion).
If Bitcoin were a bank, with the new price that the cryptocurrency still maintains at the time of this edition, it would be the “bank” No. 1 in the world by capitalization, surpassing the largest existing banking entities, such as JPMorgan, Bank of America and China's ICBC. On the other hand, its market capitalization gives Bitcoin a well-deserved place in the position No. 6 among the largest companies and enterprises in the world, surpassing Tencent Holdings Limited, the electric car manufacturer Tesla, and even giants such as Facebook and Alibaba Group, one of the largest corporations in the world dedicated to electronic commerce on the Internet.
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600% growth in the last year
After a year, the price of Bitcoin has risen 6 times its value, going from $9.630 USD per unit in mid-February of last year, to more than $57.990 USD as of today. This is equivalent to a growth of 600,7% during this period.
Much of the bullish rally that Bitcoin is experiencing, which began sharply at the end of 2020, was due to the masterful entry it made Paypal to the world of cryptocurrencies and digital assets, by announcing that it would soon offer financial services for the purchase, sale and custody of crypto assets to US and global clients. Likewise, the initial investment made microstrategy, an American business intelligence company, in Bitcoin, aroused a great wave of demand for this cryptocurrency, causing the price in the markets to begin to grow impressively.
MicroStrategy shared several of the strategies it was implementing to enter BTC investment, attracting many other institutional investors to consider their participation in this cryptocurrency, which began to be seen as an alternative investment asset with great potential. As of today, MicroStrategy has more than 70.780 BTC in its custody, and plans to invest another $1.000 billion in BTC, thus becoming one of the largest institutional investors in the cryptocurrency and a major driver of its value.
Also, the recent entry of Tesla The investment in Bitcoin, with a total of 1.500 billion dollars, sent the price of BTC to new highs.
Bulls target 60K as new level
The statements of several companies that already claim to continue investing in Bitcoin this year, and the rumors about the entry of other possible institutional investors, such as Twitter, Morgan Stanley y BlackRock, who could decide to invest in the cryptocurrency very soon, are raising expectations for the price of Bitcoin to new highs. The next level that experts consider is $63.000 USD, which could be seen soon if BTC maintains $48.000 USD as support.
Hand in hand with large institutions
As we see, much of the growth that bitcoin is experiencing has depended on institutional adoption; those large corporations and banks that until a few years ago accused bitcoin of being a bubble and condemned it to failure.
However, today the announcements of important banks, such as the BNY Mellon, the world's largest custodian, and Deutsche Bank, one of the most important banks in Germany, to provide financial services with Bitcoin consolidates the fact that this cryptocurrency is no longer seen as a bubble that is going to burst at any moment, nor that it is an asset with no real value, as they also stated in the past. Even cities like Miami are already considering the use of this cryptocurrency to pay municipal taxes, salaries, and as a potential investment asset to protect their treasury. Also, initiatives such as the Canton of Zug in Switzerland and KIKLABB of Dubai, to accept payments in bitcoins, reaffirms that it is unlikely that this cryptocurrency will become worthless in the future and disappear.
Bitcoin, which has only been in existence for 12 years and has been known in the market for less, achieved what cost many of the world's largest corporations many more years. Companies like Microsoft and Google reached $1 trillion in capitalization in 45 and 22 years, respectively.
Finally, another cryptocurrency that is setting records in its history is Ethereum, whose capitalization has just exceeded 220.000 million dollars, with a maximum of $2.042 USD. In terms of capitalization, Ethereum would be the fourth largest bank in the world after China's ICBC, and the thirty-sixth company in the world, after Pinduoduo Inc., China's largest agriculture-focused technology company, with more than 730 million active users.
Bitcoin and Ethereum represent 86% of the total capitalization of cryptocurrencies, which is located at 1,74 billones dollars, at the close of this note.
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