Yesterday, 6th January, was a jaw-dropping day for a couple of reasons. American politics reached a new low, as Trump incited his supporters to violence, resulting in a full-scale mob assault on the Capitol building itself, shocking the rest of the world as we looked on.
But, if that was the downside of yesterday, there was also a remarkable upside: the entire cryptocurrency market cap broke through $1 trillion, as Bitcoin and Ethereum continued their upward trajectory. The saying, ‘Maybe the moon’ is not looking so far-fetched right now?
As I write, Bitcoin has tumbled over the $37,000 mark: a remarkable recovery seeing as it was at around $31,000 on Monday. As Cointelegraph reports, “Measured by market cap, the crypto asset class has virtually doubled over the past month,” and BTC and ETH have seen new ATHs. ETH in particular is looking interesting, as it cleared $1,100 for the first time in three years, and now alongside BTC, the two account for two-thirds of the market.
Of course, they are not the only cryptocurrencies seeing exceptional gains, as “dozens, if not hundreds, of cryptocurrencies, report double-digit percentage returns this past week.” However, we must acknowledge that Bitcoin retains its market dominance, and is unlikely to be surpassed in value soon, even though altcoins may make bigger percentage gains.
To reach a $1 trillion market cap is remarkable, and it came only a matter of days after the leading crypto’s passed the highs of the 2017 bull run. Back then, the combined market cap hit roughly $830 billion, according to CoinMarketCap, and we thought that was huge at the time.
It is worth keeping an eye on the smaller altcoins though, if you’re thinking of investing. As Sam Bourgi at Cointelegraph says: “Bitcoin’s bull cycles pave the way for a subsequent altcoin rally, which is often larger than the initial BTC mark-up. Dubbed ‘altseason’ by the crypto community, the parabolic rise in altcoins can happen quickly, leaving investors with little time to prepare. “
Naturally, the current sentiment for cryptocurrency in 2021 is very bullish among crypto analysts and supporters, and those of us who hold crypto will no doubt hope their views are what come to pass. Crypto has often taken us into a beautiful dream, but as those of us who have been involved with it for years know only too well, it’s an edifice that can collapse with the same shocking speed, as a so-called peaceful protestors turn into an angry mob.