The total value of digital currency Bitcoin on Monday exceeded the value of all silver reserves worldwide. According to the calculations of the specialized portal “Infinite Market Cap”, all bitcoins exceeded 1.41 trillion US dollars (1.3 trillion euros) for the first time.
The oldest cryptocurrency is worth more than the total value of silver ($1.38 trillion). It is estimated that around 1.74 million tonnes of silver have been mined worldwide so far. As of Monday afternoon, Bitcoin was trading at around $71,700 on stock exchanges.
Major investors boost bitcoin price with new ETFs
The recent rapid rise in the price of Bitcoin was driven by large investors such as Grayscale, BlackRock and Fidelity launching Bitcoin funds in the US. These Bitcoin ETFs were approved by the US Securities and Exchange Commission in January. It allows investors to invest in Bitcoin without directly buying or holding the digital currency.
Bitcoin's rally is up 62 percent since the start of the year
Bitcoin's rally began last fall. Since the beginning of the year alone, the digital currency has gained about 62 percent against the US dollar. Gold tops the list of most valuable investment products in “Infinite Market Cap”. The total global holdings here are ten times the value of Bitcoin ($14.7 trillion). Listed companies then follow in the rankings: Microsoft is in second place with a market value of $3.02 trillion, followed by Apple ($2.64 trillion) and AI chip maker Nvidia ($2.19 trillion).
Bitcoin's All-Time High But Unpredictable Future
With new bitcoin all-time highs, there is no guarantee that bitcoin prices will continue to rise in the future. After a previous high of $69,000 on November 10, 2021, the price fell below $17,000 in less than a year as a scandal surrounding criminal activity surrounding crypto exchange FTX shook investors' confidence.
The next bitcoin halving will further affect the price
The strong bitcoin price development could be factored into an event expected on April 20th: the so-called next halving. The reward Bitcoin miners receive for validating crypto transactions is halved. Ultimately, this process leads to a slowly growing supply of Bitcoin, which in the past has usually seen prices rise.
