In just a week, the capitalization of the cryptocurrency market increased by $300 billion and today exceeded $1.3 trillion after the report of Tesla on the investment of $1.5 billion in bitcoin.
The cryptocurrency market continues to reach new heights due to the influx of new investors. The vast majority of this growth came from bitcoin, which reached $40,960 over the weekend, and today broke another record, reaching almost $45,000. A solid share of this growth in BTC is due to Elon Musk, who first “encouraged” investors on Twitter, and then his company Tesla announced the purchase of bitcoins for $ 1.5 billion. This is the largest purchase of cryptocurrency by a corporation to date.
Bitcoin first soared to $20,000 after CME launched bitcoin futures in December 2017. With the approach of the Chinese New Year, many traders expect large price fluctuations, as during the New Year holidays, Chinese citizens begin to sell bitcoin, which leads to a drop in its value. But this year, the tradition may be broken due to the influx of investment from other countries.
The last few days turned out to be successful for ether, which last week updated the historical maximum, reaching $1,760. The exchange rate of ETH has slightly decreased, but over the past six days, this cryptocurrency has not fallen below $1,500. Given that today the Chicago Mercantile Exchange (CME Group) launched trading in futures contracts for ETH, the volatility of this crypto asset may increase. Such contracts will allow institutional investors to speculate on the price of ether in both long and short positions.
The” surge of activity ” began with Dogecoin, as celebrities began to pay attention to this cryptocurrency. So, last week, the founder of Tesla, Elon Musk, jokingly called Dogecoin “the people’s cryptocurrency”. He was joined by American rapper Snoop Dogg. He posted an image of himself on Twitter, where he inserted a dog of the Shiba Inu breed, symbolizing Dogecoin, instead of a face.
— Snoop Dogg (@SnoopDogg) February 6, 2021
The head of Tesla also responded with a joke, posting an image of a scene from the cartoon “The Lion King”, as if Musk is holding a musician from the rock band Kiss Gene Simmons (Gene Simmons), and he is Snoop Dogg, who in turn is holding a dog.
So … it’s finally come to this … pic.twitter.com/Gf0Rg2QOaF
— Elon Musk (@elonmusk) February 7, 2021
Such interest in Dogecoin led to the fact that nothing but the image of an unremarkable coin entered the top ten leaders in market capitalization. Over the past day, Doge has grown by another 10%, and the capitalization of the crypto asset is already $9.8 billion.
The stock and futures markets are also growing rapidly. For example, futures on the Dow Jones, S&P and Nasdaq rose sharply after the information that this month may be implemented by US President Joe Biden (Joe Biden) on the allocation of $1.9 trillion for economic recovery. This further fuels the “bullish” sentiment in the market. According to a study conducted by the cryptocurrency exchange Coinbase, many Americans spend the benefits received from the state to buy bitcoin.
Recall that on the night of January 7, 2021, the capitalization of the cryptocurrency market for the first time in history exceeded $1 trillion.