Bitcoin Market Cap Recovers to $1 Trillion... Will the Uptrend Resume?

After Surpassing $1 Trillion for the First Time on the 19th of Last Month, in Just 19 Days
CNBC: "Bitcoin Emerges as an Alternative Investment"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Bitcoin prices have resumed an upward trend, regaining a market capitalization of $1 trillion.

According to Coindesk on the 9th, Bitcoin prices have risen continuously, surpassing the $1 trillion market capitalization mark again on this day. This is 19 days after it first broke the $1 trillion barrier on the 19th of last month.

Bitcoin is currently trading around $53,900 (61.44 million KRW), up approximately 6.6% compared to the previous day. Bitcoin prices have increased about 80% since the beginning of this year and have risen 570% over the past 12 months.

The resurgence in Bitcoin prices is attributed to recent active purchases and investments by institutional investors, as well as announcements of purchases by major U.S. IT companies such as Tesla and Square.

Along with Bitcoin purchases, the number of companies attempting investments in various sectors of the cryptocurrency industry is also increasing. PayPal, the largest electronic payment company in the U.S., announced yesterday that it will acquire cryptocurrency security firm Curve for about $200 million (227.9 billion KRW).

CNBC reported, "Bitcoin supporters regard this cryptocurrency as another form of gold, a type of safe-haven asset," adding, "Bitcoin is being used as a refuge asset in preparation for economic crises such as inflation."

CNBC also added that the decline in the value of the U.S. dollar, due to central banks around the world maintaining low-interest rate policies and asset purchase programs as part of economic stimulus measures, is another reason Bitcoin is gaining attention as an alternative investment.