This Monday (4), Bitcoin (BTC) was less than 250 dollars away from reaching its maximum mark of 69 thousand dollars, reached at the end of 2021 during the Covid-19 pandemic.
At 11pm yesterday, the cryptocurrency reached US$68,762, according to the aggregator CoinGecko. In the early hours of this Tuesday (5), however, BTC retreated slightly, and began trading at US$67,099 around 8 am.
Despite not having yet reached its maximum value, crypto has already reached a record market value. Bitcoin’s capitalization reached a peak of US$1.35 trillion, above the level of US$1.28 trillion in November 2021.
The currency’s capitalization surpassed the market cap of gigantic groups such as Tesla, Visa and Meta, according to a survey by the website companiesmarketcap.com.
Bitcoin boom in 2024
Historically, a high market cap “has been the most reliable price signal that a new phase of the current market is beginning,” David Lawant, head of research at crypto exchange FalconX, told Bloomberg.
The search for spot Bitcoin ETFs (index funds) in the United States, as well as the halving (event that cuts Bitcoin issuance in half), drove the recent increases.
Furthermore, speculation has returned even more significantly in the crypto industry with bets on derivatives markets. Indefinite settlements on Chicago-based CME Group’s Bitcoin futures market hit a record high on March 4.
InfoMoney pointed out that investors’ stance indicates that the digital asset market is relatively vulnerable to a reversal if demand for ETFs starts to fall. For now, movement in the cash, ETF and derivatives markets remains optimistic.
“It’s been flow that’s driven price action,” wrote Chris Weston, head of research at Pepperstone Group, in a note to Bloomberg.
Altcoins
The main altcoins also operate higher this Tuesday. Ethereum (ETH) surpassed the US$3,700 level, the highest value since January 2022. The main reason for the crypto’s rise is an update, scheduled to take place on March 13th.
BNB Chain (BNB) rises +0.40%, Solana (SOL) rises +0.10% and XRP (XRP) appreciates +0.40%.
Among smaller cryptos, the highlights of the day are eCash (XEC), with an increase of +56.90%, and memecoin (meme-based token) Shiba Inu (SHIB), which registers an increase of +54.70% in day.
