In a relatively long bull phase, the global cryptocurrency market capitalisation crossed the $2 trillion-mark last month. Experts now foresee Bitcoin, the largest and most sought-after cryptocurrency in the world, to cross $100,000 by the end of 2021. Also, other cyrptos, such as Cardano, XRP and Dogecoin, are also expected to do well.
According to a report in NDTV Profit, the market cap of cryptos across the world surged beyond $2 trillion in August. Among the significant gainers were Bitcoin, Cardano, XRP and Dogecoin. It cited data from CoinMarketCap to say the current global crypto market cap is $2.29 trillion, up 0.04% from the previous day.
The rapid rise in the value of cryptos is seen as an indication of their wider acceptance globally by a range of investors.
In a rebound that came after a long slump, Bitcoin rallied past the $50,000 mark in August for the first time since May. NDTV Profit said this was because investors were upbeat that more US stimulus spending would result in bigger gains for the virtual asset. Since hitting a yearly low of $27,700 in January 2021, Bitcoin has zoomed by about 81%, the report noted.
Several established financial enterprises are now enabling access to cryptos for their customers, which is again helping the virtual assets. For instance, PayPal said recently it would allow its UK customers to make crypto transactions.
“Two fundamental factors that are likely behind Bitcoin’s push: Twitter’s potential integration of the coin as a Tip Jar payment option, and the official launch of Bitcoin as a legal tender in El Salvador come Sept. 7,” a Bloomberg report quoted Petr Kozyakov, co-founder and Chief Executive Officer of global-payment network Mercuryo, as saying in an email. “While we are expecting the $50,000 price point to hold, Bitcoin buyers are exercising more optimism for even a bigger price gain by year-end.”
A Barron’s report pointed out that the regulatory climate is only getting tougher. Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), has warned crypto companies not to launch products or services without registering first with regulators, it noted. “They shouldn’t come ‘begging for forgiveness’ after launching without doing so,” it quoted him as saying.