Bitcoin is unstoppable: While the cryptocurrency has reached a new record high, total market capitalization is approaching the magic mark of one trillion US dollars.
As if the last all-time high was not just a few days ago, Bitcoin broke the next sound barrier at full throttle in the early hours of the morning, conquering the $35,000 mark for the first time. The cryptocurrency has now gained almost 7,000 US dollars in seven days: not the worst weekly performance. At the time of writing, Bitcoin is trading at 35,166 US dollars with a daily gain of 12 percent.
Bitcoin price in weekly chart
At 665 billion US dollars, the Bitcoin market capitalization also set a new record overnight. In the last 24 hours alone, around 70 billion US dollars have flowed into the digital currency. Currently, the value of just under 650 billion US dollars has been corrected downward somewhat. However, if Bitcoin continues the rapid pace of the last few weeks, the 700 billion US dollar mark is likely to fall in the foreseeable future.
Bitcoin market capitalization
Under the boost of the dominant cryptocurrency, almost the entire crypto market turns positive. With the exception of the problem child XRP and the stable value stablecoin Tether (USDT), the top 10 largest cryptocurrencies are posting gains between as high as 22 percent on the day.
With the rush of investors, capital inflows into the crypto market are increasing rapidly. Meanwhile, the total market capitalization is already at $960 billion, just shy of the magic mark of $1 trillion. This figure alone makes it clear that the market is booming. Just two months ago, the total market capitalization was just under 450 billion US dollars. In this short period of time, the value of all cryptocurrencies has thus more than doubled.
Bitcoin on a record chase
No matter which metric you look at right now: The signs point to growth. The number of active addresses, i.e. those that issue or receive transactions, is gradually increasing and slowly but surely paving the way to an all-time high. With more than one million active addresses, there is not much left to reach the (still) record high from 2017.
Active Bitcoin addresses
Meanwhile, the trend of dwindling exchange reserves that has been evident since 2020 continues. Just under 2.3 million BTC remain in the Exchanges‘ reserves. With the increasing demand, the limited stocks are visibly becoming scarcer. Clearly, if the Bitcoin price rises, fewer Bitcoin are withdrawn in percentage terms. But if the number of new investors also increases, and at the same time ever larger sums are transferred into BTC by institutional investors, at least the smaller exchanges could go bust in the foreseeable future.
The fact that the Bitcoin rally always experiences setbacks is in the nature of things. Profit-taking always brings the cryptocurrency back down to earth. The fact that too rapid growth is also not healthy was ultimately demonstrated by the bubble formation in 2017/18. However, in contrast to the bull year 2017, this rally shows a much more sustainable growth and points to an overarching uptrend that outlasts bear cycles. In any case, the indicators speak for themselves. Even such bold price forecasts as those of banking giant JPMorgan come as no surprise.