Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The Crypto Market ends the week at a total market capitalization of $1,094 trillion. Bitcoin has dropped by nearly 3% this week. Ethereum lost almost 1% over the past seven days. XRP is down by nearly 5% this past week. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector maintains the total value protocols (TVL) at around $40 billion. Crypto…
Bitcoin (BTC) rapid rise in 2021 has been remarkable, with the leading coin hitting a new all-time high on Friday. According to the latest stats, Bitcoin is worth more than the two largest banks in America combined.
Bitcoin Market Cap Nears $900 billion.
Bitcoin’s price has rebounded in the past few days after initially trading around the $42k mark on Monday. Buoyed by the news of institutional purchases of BTC, the price pumped to $48,000 on Thursday. A quiet push followed this in the early hours of Friday, and BTC created a new all-time high of $48,745, according to data from CoinMarketCap.
Bitcoin market cap has recorded exponential growth in the last three months. Since the start of the new bullish run in November, BTC has added $530 million to its market capitalization.
At the time of writing, the market cap of Bitcoin is $889 billion. This is more than the combined market cap of JP Morgan Chase ($423 billion) and Bank of America ($305 billion). The two banks mentioned above are the biggest in the United States and dominate the banking sector.
Reasons for Bitcoin spike in Market Cap
Bitcoin growth is mostly down to the rise in price from $15,000 in November to its current levels of $48,000. Also, institutional adoption has contributed immensely to the growing demand for bitcoin.
Several financial institutions have either purchased bitcoins or added crypto services to their portfolio. The payment processing giant PayPal added cryptocurrencies to its platform in late 2020, which spurred the initial bullish run. In recent days, credit card giants Visa and Mastercard have revealed plans to offer crypto services on their platforms.
Tech giants have not been left behind, with leading car manufacturer Tesla adding $1.5 billion bitcoins to its portfolio. Twitter recently stated that it was considering adding bitcoins to its portfolio while Amazon is developing its crypto platform.
Cities across the world are also looking to add bitcoins to their treasuries. Miami today became the first Bitcoin municipal in the United States. Citizens can now pay their taxes and levy fees in bitcoin. There are more expectations that the growing adoption of bitcoin will increase the price of the leading asset. Naturally, its market cap will continue to grow, and it will be no surprise if it hits the $1 trillion mark before the end of February.