Bitcoin reached a new record price on Friday, having a market capitalization of 1 trillion dollars. On Friday, the most popular cryptocurrency grew by 2.6%, to a record high of $ 52,932, which means an increase of over 8% in a week and a jump of about 60% since the beginning of this month. The spectacular progress made by bitcoin in recent months has been fueled by signals that it is beginning to be accepted by a growing number of investors and companies, from Tesla and Mastercard to BNY Mellon.
The latest jump in bitcoin has brought its market capitalization, the value of all bitcoin coins in circulation, to about 982 billion dollars, according to data provided by the online portal CoinMarketCap, while the market value of all cryptocurrencies has reached 1.6 trillion.
However, many analysts and investors remain skeptical when it comes to poorly regulated and volatile digital currencies, as they are still not widely used in stores.
JP Morgan analysts say current bitcoin prices are well above their fair value estimates. Large-scale adoption increases the correlation between bitcoin and cyclical assets, which increase and decrease with economic cycles, which consequently diminishes the benefits of diversification in the area of cryptocurrencies, US bank analysts say in a report.