Of Jonathan Ponciano
The huge bitcoin rally continued over the weekend, pushing the capitalization of the world's first and largest cryptocurrency to $ 1,2 trillion, but also to higher profits for the rest of the market.
Important events
-According to CoinMarketCap, the price of bitcoin increased by 9% on Saturday, reaching $ 57.350, thus recording weekly profits of 20%.
-The prices of ether and binance, the second and third largest currencies in the world, have risen 13% and 120%, respectively, last week, helping the wider cryptocurrency market to raise a total value of about 1,8 trillion. dollars - almost double compared to the beginning of February, when the market capitalization was close to 1 trillion. USD
Many analysts estimate that bitcoin's new profits are due to institutional investors, most notably the revelation that Tesla has invested $ 1,5 billion in the most popular digital currency.
Despite the fact that he has fueled much of the cryptocurrency upward trend in recent weeks, Tesla CEO Elon Musk wrote on Twitter that bitcoin and ether prices are "rather high", although he also said that cryptocurrencies can offer greater protection against inflation, compared to the traditional shelter, gold.
Six times over
As of Saturday morning, the price of bitcoin was $ 57.005, which is almost six times more than a year ago.
What we do not know
The biggest question mark over the future of cryptocurrency is the regulatory environment, which eventually led to a fall in cryptocurrency prices three years ago. U.S. Securities and Exchange Commission officials have suggested that digital currency prices should be tightly controlled, although many experts say this could not hurt the market.
Given the volatile nature of cryptocurrencies, it is estimated that less than 5% of listed companies will invest in bitcoin over the next 18 months, but that is about to change as governments accept the cryptocurrency, according to analysts.
With Capital.gr