The volume of the cryptocurrency market for the first time exceeded $ 1 trillion against the background of a new record for the bitcoin rate

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The volume of the cryptocurrency market for the first time exceeded $ 1 trillion against the background of a new record for the bitcoin rate

On Thursday, January 7, Bitcoin broke the $ 37,700 mark, setting a new record. The New Year’s rally also affected other virtual coins, thanks to which the total volume of the cryptocurrency market exceeded $ 1 trillion for the first time.

bitcoin
bitcoin

According to the resource Coindesk, at about 8:44 Moscow time, the most popular cryptocurrency reached a record level of $ 37,739.08 just a few hours after breaking the $ 36,000 mark. Since the beginning of 2021, bitcoin has increased in price by about 29%, and over the past. In 12 months, its growth was more than 380%.

Such rapid growth in bitcoin is explained by several factors, including the influx of institutional investors into the cryptocurrency market, as well as the inclusion of the US Federal Reserve, together with other central banks, of the printing press to provide economic stimulus programs against the backdrop of the coronavirus pandemic, which could lead to a new round of inflation.

“ The current round of growth in January is sure to draw the attention of asset managers to diversify their assets into cryptocurrencies further as they are interested in finding alternative investments such as cryptocurrency or gold to hedge inflation and geopolitical risks,” said Simons Chen. Simons Chen, executive director of investment and trading at crypto finance company Babel Finance, in an interview with CNBC. He added that many investors are rushing to join the race for fear of missing out on an opportunity to capitalize on this growth.

But not all experts share this desire. For example, David Rosenberg, an economist and strategist at Rosenberg Research, called Bitcoin a bubble. “ I would describe the parabolic (rate) change in Bitcoin in such a short period of time as highly abnormal, ” he told CNBC earlier this month.

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