- Market capitalisation of all cryptocurrencies passed $US700 billion to reach a fresh all-time high on Wednesday.
- The record high comes as bitcoin continues to recover from its Christmas plunge.
- Bitcoin rallied over 10% on Tuesday after it was revealed that billionaire tech investor Peter Thiel has put as much as $US20 million into the cryptocurrency.
LONDON – The overall value of the global cryptocurrency market surpassed $US700 billion on Wednesday to reach a fresh all-time high.
According to data provider Coin Market Cap, the market capitalisation of all combined cryptocurrencies in circulation is now $US707 billion, as of around 8.45 a.m. GMT (3.45 a.m. ET) on Wednesday. The market has since dipped and is worth $US683 billion at 10.55 a.m. GMT (5.55 a.m. ET) but the record high reached earlier in the day remains significant.
Market capitalisation is a basic valuation metric which multiplies the value of an asset – usually a share in a company – by the amount of that asset in circulation. The total market cap of the crypto market has spiked higher in recent months as many of the more than 1,300 cryptocurrencies in circulation rose.
Mati Greenspan, an analyst at eToro, wrote in his daily crypto roundup on Wednesday: “There’s a distinct buying sentiment among cryptotraders today. The pre-Christmas sell off seems to be well behind us now. Though Bitcoin is still a bit off her all-time highs some of the alts are generating some serious momentum.”
Bitcoin saw its value drop as much as $US8,000 in a matter of days over Christmas after a manic rally in December. The biggest and most recognisable cryptocurrency gained strongly on Tuesday after it was revealed by the Wall Street Journal that Founders Fund, the venture-capital firm founded by the tech billionaire Peter Thiel, has made hundreds of millions of dollars from bitcoin investments after investing $US15-20 million in the asset.
Bitcoin’s gains have continued into Wednesday, with the cryptocurrency up by around 1.5% to trade at close to $US15,000 per coin, as of 9.55 a.m. GMT (4.55 a.m. ET):
While the overall value of cryptocurrencies has increased to a new record, the proportion of that value made up by bitcoin is at an all-time low.
“Bitcoin’s market capitalisation as a percentage of the total crypto-market hit an all-time low below 36% on Tuesday as smaller so-called alternative cryptocurrencies rallied,” Business Insider’s Frank Chaparro wrote, citing data from Coin Market Cap.
There is increasing evidence that crypto investors are shunning bitcoin in favour of the likes of ethereum and Ripple, two currencies that are vying to be the second largest by market capitalisation.
Business Insider Emails & Alerts
Site highlights each day to your inbox.