Cryptocurrency market value topped $1 trillion as Bitcoin Reaches Record-Breaking Level

Leading cryptocurrency, Bitcoin has roughly doubled its value in less than a month, gaining traction among institutional investors driven by the perception that it is a good safeguard against inflation, and even touted as potentially becoming an alternative to gold.

According to CoinGecko‘s index of 6,124 assets, the value of the cryptocurrency market topped $1 trillion for the first time on 6 January. The surge was driven by yet another record-high registered by the world’s biggest digital money by market cap, Bitcoin.

Registering a gain of more than 14 percent from a day earlier, according to CoinDesk data, Bitcoin passed the $40,000 mark to peak at $40,324.01 on Thursday afternoon. The movement triggered a spike in the combined market value of all cryptocurrencies up by about 9 percent to $1.05 trillion, according to CoinMarketCap.com.

“Crypto investors appear to have got used to the extreme price fluctuations and have so far kept a cool head despite the occasional flash crash,” Milan Cutkovic, market analyst at Axi, was quoted as saying.

He added:

“Fear of missing out is driving this rally, and an increasing number of investors want to jump on the bandwagon before the next major leg higher.”