$ 56,300 price and $ 1 trillion market cap indicate Bitcoin is here to stay

As the price of Bitcoin (BTC) surged above $ 55,300 in the early hours of today’s trading session, its market cap surpassed $ 1 trillion for the first time on February 19. The breakout continued throughout the day and in the last hour the price of BTC hit another all-time high of $ 56,368.

Now that Bitcoin has established its status as a trillion dollar asset between companies like Amazon, Apple, and Google, Legacy banks are showing increasing interest in offering cryptocurrency custody services for their clients.

BTC / USDT 4-hour chart. Source: TradingView

According Treyce Dahlem, TheTIE analyst, conversations on social media where ‘Bitcoin’ is mentioned as a keyword have increased by 38% since February 18. Over 102,000 tweets have been sent in the last 24 hours, and this is just “30,000 tweets before setting a new record.”

Dahlem said:

“The number of Twitter users talking about Bitcoin on a daily basis has reached a new all-time high of 38,500, 325% more than a year ago.”

Altcoins soar as DeFi and CeFi begin to merge

Daily performance of the cryptocurrency market. Source: Coin360

Several altcoins joined BTC and Ether (ETH) to set new all-time highs, as centralized and decentralized exchange tokens posted big gains.

Binance Coin (BNB) continued to benefit from the growing influence of the Binance Smart Chain (BSC), as the increase in volume pushed the token to a new high of $ 348.72.

This parabolic rally secured BNB’s place as the third largest cryptocurrency by market capitalization behind Bitcoin and Ether.

DeFi-related projects like PancakeSwap (CAKE) and Venus (VXS) are two of the BSC’s top attractions and both hit new highs of $ 20.62 and $ 101.50 respectively. REN also caused a stir after its recent integration with the BSC helped lift the token to a new peak of $ 1.69.

Traditional markets close the week mixed

After a week of fresh highs for the major indices, traditional markets ended the week mixed on Friday as the US economy faces the continuing fallout from the pandemic and rising unemployment.

The NASDAQ ended the day 0.07% higher while the Dow was flat. The S&P 500 fell 0.19%.

The bullish momentum may extend throughout the weekend

As traditional markets close for the weekend, the bullish momentum for Bitcoin and altcoins shows no signs of slowing down. Recent historical data shows that Bitcoin rallies in 2021 tend to occur over the weekend and many analysts believe that the top-ranked digital asset could break the $ 60,000 level over the weekend.

The permanent nature of the cryptocurrency sector means that markets are always active somewhere on the planet. As the current bull market attracts increased attention from retail and institutional investors, the trend of declining trading volume over the weekends appears to be out of date.

Although the price of Ether (ETH) has remained below $ 2,000, it still managed to climb to a new high of $ 1,974.

There are more and more bullish rumors that Institutional investors are deeply interested in the returns offered by Eth2 staking, as well as participating in the growing DeFi ecosystem, both of which are the driving force behind the growing demand for Ether.

Total capitalization of the cryptocurrency market. Source: CoinMarketCap

Recent price breakouts of major tokens like Bitcoin and Binance Coin and DeFi superstars like REN and CAKE have also helped lift the total market capitalization of the cryptocurrency sector to a new record of $ 1.705 trillion. Bitcoin’s dominance is currently 61.1%.

Keep reading:

Source link