Bitcoin’s market valuation crosses $1 trillion again amid risk rally

Bitcoin rose for a fourth day, pushing the market value of the digital asset back to over $ 1 trillion amid growing optimism in the financial markets.

The world’s largest digital asset surged up to 5.2 percent before trading around $ 57,000 as of 12:23 a.m. in New York City. On the way to a record high of $ 58,350, it exceeded $ 1 trillion for the first time in February.

The gain comes even if a key measure of US consumer prices rose less-than-expected in February, suggesting general inflationary pressures remain moderate. Bitcoin proponents have championed the digital asset as a hedge against a future surge in inflation.

While the $ 1 trillion mark is notable, it has been argued that the allocation of a market capitalization is not an accurate representation since Bitcoin is not a company or even an asset. Skeptics say that with no real assets owned by companies or government support like the dollar, all investors are really buying trust in the cryptocurrency network.

Ether – the second largest cryptocurrency in the world – gained up to 3 percent. The gains reflect broader risk optimism on the Nasdaq 100 Index, which this week bounced back from an earlier decline that pushed it into correction territory.

Bitcoin proponents argue that the digital asset is a store of value that can be used as a hedge against inflation and a weaker dollar as fiscal and monetary support flooded financial markets with liquidity over the past year. Critics claim that the cryptocurrency is in a stimulating bubble that is likely to burst.

Dear Reader,

Business Standard has always endeavored to provide updated information and commentary on developments that are of interest to you and have far-reaching political and economic implications for the country and the world. Your encouragement and constant feedback to improve our offering has only strengthened our determination and commitment to these ideals. Even in these troubled times resulting from Covid-19, we continue to strive to keep you updated with credible news, authoritative views, and concise comments on relevant topics.
However, we have a request.

As we struggle against the economic impact of the pandemic, we need your support even more so that we can continue to provide you with higher quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. A larger subscription to our online content can only help us achieve our goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support of quality journalism and Subscribe to the Business Standard.

Digital editor

Recent articles

Crypto exchanges struggle as El Salvador adopts Bitcoin

Today, Bitcoin is becoming an official currency in El Salvador, and the markets and crypto exchanges seem to be struggling. On...

Schools are back – and time to comply with the ICO’s Age Appropriate Design Code

As of September 2, 2021, the United Kingdom's Information Commissioner's Office ("ICO") expects organizations to use their Age Appropriate Design Code ("AADC"). The...

the ICO wants input on when personal data goes international

You don't have to be a data-focused IT service provider to realize that the UK was lucky enough to receive an adequacy decision from...