The quotes of the world's two most popular cryptocurrencies seem to be climbing higher and higher. Bitcoin may be close to setting a new all-time record, and ethereum has already broken that record.
Demand for virtual currencies seems to still be relatively strong. The capitalization of the entire cryptocurrency market surpassed $2 trillion for the first time last week and seems to have been driven mainly by a rally in ETH, the second-largest digital coin. In just over two months alone, the cryptocurrency market capitalization has doubled as retail and institutional investors seem to keep increasing the share of cryptocurrencies in their investment portfolios. Bitcoin, the largest digital currency, accounts for more than 50 percent, of the total cryptocurrency market capitalization. This year alone, bitcoin has risen more than 100 percent, which has helped drive the overall market. Last month, bitcoin reached a record high of over $61,000, and today it is back above the $60,000 level.
At $1.13 trillion, bitcoin's capitalization alone is larger than that of Tesla or Facebook. According to the infinite market cap, it is approaching the capitalization of the entire silver market, which is $1.37 trillion. The high price of BTC may be maintained by its decreasing availability. Data from the CryptoQuant website shows that the number of available bitcoin on exchanges has fallen to 2.2 million, which, with over 18.5 million BTC mined, means that only about 12 percent of all bitcoin is available for trade. Meanwhile, it seems that there is still more capital interested in trading in the cryptocurrency market.
Even more excitement this week for cryptocurrency investors and those associated with the classic stock market may be provided by the debut of the largest U.S. cryptocurrency exchange, Coinbase, on the New York Stock Exchange. The expected valuation of Coinbase at USD 100 billion provides emotions. There is no shortage of opinions that it is inflated, as Coinbase's revenues would have to reach a value equivalent to 1.5 times the 2020 combined revenues of the two most recognized exchanges on the market: Nasdaq Composite and Intercontinental Exchange Inc. Hence, the excitement on April 14, when the debut is scheduled, could be huge.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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