Bitcoin surged past the $50,000 mark once again on Thursday. The biggest cryptocurrency rose nearly 6 per cent during the 24-hour period to $50,329 before slipping back to the $49,500 level at the time of filing this report, according to the data from CoinMarketCap, even as the overall crypto market’s rally continued. Bitcoin had last surpassed $50,000 on August 23 – the first time since May this year. Prices for other coins had also increased including over 6 per cent growth in Ethereum to $3,826, 9 per cent for Cardano, etc. The overall crypto market value had jumped from $2 trillion to $2.25 trillion in the past seven days.
“There are hardly 100 million people in the world who have bought some form of crypto. Bitcoin ownership is probably around 80-90 per cent of that. Given that more and more people and institutions are buying bitcoin, price discovery is certainly going to be very volatile. And the fact that bitcoin is traded 24x7x365 across multiple exchanges in multiple formats, is also the reason I think we see so much volatility while it is also driven by macro factors,” Atul Chatur, Co-founder, Antilles Cryptocurrency Ecosystem told Financial Express Online.
Bitcoin has rebounded significantly since around mid-July amid increased institutional interest. For instance, last week, Twitter founder Jack Dorsey had announced that his payment company Square would be launching a decentralised bitcoin exchange under the project named TBD. “I think bitcoin will reach the previous high of over $63,000 within a month or so and by year-end, it would be around $100k while there might be some dips,” added Chatur.
Importantly, the crypto listings in the first half of 2021 had swelled as CoinMarketCap had added 2,655 new crypto assets to its database, up from 2,000 coins in 2018 to take up the tally of coins listed to 10,810, according to CoinDesk. In comparison, this had indicated an average of only 1,538 coins were added during every six-month period of 2019 and 2020. Similarly, Singapore-based CoinGecko had added 3,064 new coins while Poland-based crypto research platform Coinpaprika had added 2,000 new coins to its database.