Published on Feb 21, 2021 at 15:28Updated on Feb 22, 2021 at 8:44AM
Bitcoin’s crazy take-off continues. The first of the cryptomoney closed at a new all-time high on Saturday, at over $56,500, just days after surpassing the $50,000 mark for the first time. On Sunday, it was still earning 1% in session. The value of all bitcoins in circulation, a little over 18.6 million according to the Coinmarketcap.com website, now exceeds $1 trillion.
This is the equivalent of more than three LVMHs. The world giant of luxury, first European capitalization, is worth 331 billion dollars on the Stock Exchange. The bitcoin market has surpassed the valuation of Tesla (750 billion) and is now approaching that of the Big Tech mastodons, starting with Google (1,400 billion). It must be said that Bitcoin has had an exceptional start to the year. The digital currency has almost doubled in value since the beginning of January, when it was still trading for less than 30,000 dollars. By way of comparison, the Nasdaq index with its strong technological colouring has gained less than 8% in the meantime.
Bitcoin’s spectacular journey leaves even some of its most ardent supporters stunned. Elon Musk, Tesla’s boss and one of the gurus of American stockbrokers, has called the price of Bitcoin « high » after its recent surge. Yet he has played a leading role in his mad rush, with Tesla acquiring $1.5 billion worth of Bitcoin in January, becoming one of the first companies to bet on the widespread adoption of cryptography.
Nevertheless, Bitcoin remains extremely volatile. Since the beginning of the year, it has recorded daily increases or decreases of more than 5% on 21 occasions, four of which were in excess of 10%. This is not enough to dampen the enthusiasm of the world’s major financial institutions, attracted by the continued rise of the virtual currency in recent months. From JP Morgan to the asset management giant BlackRock, projects linked to the queen of cryptomoney are multiplying on Wall Street.