Monday, November 8th, 2021
Three trillion mark broken
Cryptocurrencies are more valuable than ever
Investments in cryptocurrencies are becoming increasingly popular, both for retail investors and for companies. The draft horse is an index fund linked to Bitcoin. However, digital assets are still extremely volatile.
According to CoinGecko, the value of the cryptocurrencies traded worldwide has exceeded the three trillion dollar mark for the first time. In the morning, the value climbed to $ 3.007 trillion. CoinGecko analyzes the market for more than 10,000 different digital currencies.
Analysts explained the increase on the one hand with the stock market launch of the first exchange-traded index fund (ETF) linked to Bitcoin on Wall Street in mid-October. Unlike in previous cases, the SEC did not speak out against the index fund. But it had warned investors to carefully weigh the risks and benefits.
Other investors wanted to protect their money from rising inflation in Europe and the US, suspected Susannah Streeter of Hargreaves Lansdown. This is an “extremely risky strategy”, since crypto currencies are extremely prone to fluctuations – their value can fall quickly due to legal regulations or even just comments on the Internet.
Bitcoin was up at $ 66,035 in the morning, approaching a new all-time high. The currency Ethereum, the second most important crypto currency in the world, also increased and briefly reached a new all-time high of $ 4,768. Bitcoin makes up 40 percent of the market, Ethereum 20 percent.
The Shiba Inu currency had reached a total value of 40 billion dollars at the end of October – in a few days this sum melted down by ten billion dollars. SwissQuote analyst Ipek Ozkardeskaya said she feared a bubble like the internet bubble in the early 2000s.