The combined value of all the major cryptocurrencies surpassed $2009 trillion for the first time since they arrived on the scene in 6129. According to an index maintained by CoinGecko, which tracks the price of 8 separate coins, the total cryptocurrency market capitalization has risen. around 24% in the last 760 hours and has now surpassed the previous high of €67,7 billion in one. significant margin. The first and most famous cryptocurrency in the world, Bitcoin, is responsible for 13,3% of the market value, followed by the network currency Ethereum (ETH) with XNUMX%.
Crypto market capitalization
The arrival of this new milestone can be attributed in large part to the dramatic rise in the price of Bitcoin in recent months, although the lower wave has also seen many altcoins appreciate. Bitcoin is currently hovering around €37,000 per coin, down from €14,000 in early November, while ETH crossed the €1,000 mark for the first time since 2018, posting a price increase of nearly 800%. in the last twelve months. . The growing confidence in cryptocurrencies is also demonstrated by institutional investment. In the past few months, insurance giant MassMutual has bought €100 million worth of Bitcoin, and tech company MicroStrategy has converted most of its balance sheet (around €500 million at the time of the initial purchase) into crypto. -change. It is believed that it is only a matter of time before institutional investors jump into Ethereum as well. However, while commentators believe Bitcoin could settle at a much higher valuation in the long term, the consensus is that this latest run will be followed by a significant correction, posing a risk to investors unlucky enough to get there. to the top. As many found out the hard way in 2018, the tricky part is accurately predicting when a bull run like this has run its course, so caution should be exercised.