On the back of the stellar rally, the total market value of all cryptocurrencies smashed through the milestone mark of $1 trillion for the first time ever. The crypto market owes such a staggering growth to bitcoin. As of early January, the number one digital currency skyrocketed more than 900% since March 2020. So, other virtual currencies followed suit. The crypto king is viewed as the catalyst for the whole crypto market’s boom. Bitcoin accounts for nearly 69% of the total market capitalization. The most popular digital currency closed the first trading week of January with a 30.4% gain. Other popular altcoins also hit record highs.
Mulling over ongoing developments, experts point out that market conditions reveal tremendous investors’ interest in cryptocurrencies which have become an attractive investment alternative to the safe haven gold. Nevertheless, the crypto market has not retained its capitalization at historic highs for long. Due to a large retracement of bitcoin, the market cap shrank by over $200 billion and tumbled below $1 trillion. Although most analysts paint a rosy picture of the crypto market, some experts warn that bitcoin could sink as low as $14,000 per token.