Bitcoin has reached a record market capitalization. For the first time in history, the cryptocurrency reached the US$ 330 billion market cap level, exceeding the US$ 326 billion recorded in December 2017. Besides, the leading cryptocurrency approached its historic high, surpassing for the first time the level of US$ 18,000.00 since December 2017. In reais, until this report’s deadline, it was close to reaching R$ 100.000,00.
Bitcoin’s historic high comes trailing behind several events. Among them, the halving occurred at the beginning of 2020 and the increased interest of significant investors. The first directly influences the currency’s supply curve. The latter, in demand.
Bitcoin record linked to political and economic uncertainties
Global political uncertainties also help boost the currency, such as the uncertainty of the US elections and the impacts of Covid-19 on national economies. As it is seen as a haven against crisis systems, bitcoin has benefited from the troubling scenario.
In early 2020, Transfero launched an investment thesis on digital assets’ performance in the biennium 2020-2021. According to the document, Covid-19 and central banks’ role in printing money would boost bitcoin and other currencies.
News that central banks are beginning to study their digital currencies would also be favoring the cryptocurrency. The Japanese Central Bank announced that it had begun studies with a Digital Yen. Other central banks, such as China’s, have already made similar moves.
Bitcoin’s rise has pulled other digital assets. Litecoin, for example, rose about 23% in seven days. XRP Ripple, 13%. The highest highs were those of the SushiSwap and YearnFinance governance tokens, exceeding 53%.