price Bitcoin It hit a new all-time high amid a record high that has seen the price double since July.
The Cryptocurrency It reached over $68,500 for the first time in its history, posting a gain of more than 350 percent over the past year.
Continued independentLive coverage of the cryptocurrency market
Other leading digital currencies also saw record highs on Wednesday, including Ethereum, which pushed the total cryptocurrency market to nearly $3 trillion — more than the combined value of the world’s 12 largest banks.
Bitcoin alone now has more market capitalization than the Swiss franc and the Russian ruble, ranking 13th in the world by currency value.
It is also the sixth largest asset, excluding precious metals, by market capitalization, ranking behind Microsoft, Apple, Saudi Aramco, Alphabet (Google) and Amazon.
Some analysts see this notable rise in value in 2021 as a potential warning for investors hoping for quick profits, while also noting that the cryptocurrency is increasingly being referred to as “digital gold” due to its ability to act as a store of value.
While bitcoin has legitimate uses, it certainly shouldn’t be the sixth largest asset on earth by market capitalization. George Monaghan, an analyst at data analytics firm GlobalData, told independent.
“The other is that investors are dumping bitcoin in the hope that it will gain value, rather than using it as a currency. The value of the product should go up because people are using it, not because they are investing in it… On the other hand, the number one asset is gold. Based on the current behavior. Bitcoin could occupy a similar role as a store of value in the global economy.”
Bitcoin’s price rally has been driven by a slew of good news for the crypto space, including the first-ever Bitcoin ETF last month, which El Salvador officially adopted as legal tender in September.
“Bitcoin and Ether are hitting new highs on inflation fears and excitement over more spot ETF deposits,” said Judy Jonesberg, Head of CoinDesk Indexes.
“If spot ETFs are approved and the assets flow into them, this will likely drive the price out of increased demand. It will also create a more costly role for investors holding futures-based ETFs with the expectation of spot prices going higher in the future.”