On Monday, the cryptocurrency market capitalisation hit an all-time high of $2 trillion, according to data and market trackers CoinGecko and Blockfolio. Bitcoin alone has hit a market capitalisation of $1.1 trillion.
Even though cryptocurrencies, bitcoin included, are volatile in nature, analysts expect bitcoin will be able to maintain its $1 trillion market capitalisation if it stays above $53,000. In mid-March, bitcoin has hit the all-time high of more than $61,000. Bitcoin broke the $50,000 mark in the month of February.
Earlier this year, Elon Musk’s Tesla, which is an electric vehicle and clean energy company based in the US, has bought $1.5 billion worth of bitcoin. The company announced the same in a Securities and Exchange Commission (SEC) filing on Monday. The company is planning to soon start accepting bitcoin as a form of payment for its products.
In the SEC filing, Tesla said, “We expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”
Antoni Trenchev, managing partner and co-founder of Nexo in London, one of the biggest crypto lenders, told the media, “Whether it’s Musk, Mastercard or Morgan Stanley, the mood, music and momentum is impossible to ignore. To the annoyance of many, the Bitcoin express has left the station.”
In January, US-based multinational investment bank JP Morgan has made a bold prediction when it comes to bitcoin. According to the bank, bitcoin prices will hit $146,000 in the long term.