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Within the bullish rally that bitcoin has unfolded since mid-March 2020, the first cryptocurrency conquered this Friday, February 19, one of its most significant milestones: to bring its market capitalization above one trillion dollars, as reported in this medium.
It is significant that an emerging asset, With only 12 years of existence, it is measuring itself with the first corporations in the world by market capitalization. Bitcoin has entered the exclusive club of valued global organizations in more than a billion dollars, which until this Friday had only 5 members: Apple, Saudi Aramco, Microsoft, Amazon, and Google. Bitcoin captured the 6th place among the billionaire companies, surpassing the Chinese internet giant Tencent.
Bitcoin achieved in 12 years, what it cost the traditional corporate world for more than two centuries , since since the creation of the New York Stock Exchange in 1792, Apple was the first company that exceeded a trillion dollars, just in 2018. At the time of Write this article, the price of bitcoin is $ 55,580. This quotation takes its market capitalization above USD 1 trillion, as reported by CriptoNoticias this Saturday 20.
According to the ranking of financial institutions by market capitalization, Bitcoin has more market value than the following US banks combined: JPMorgan Chase, Bank of America, Wells Fargo and Citigroup.
To take fifth place and crowding out Google, which has a market capitalization of USD 1.41 trillion, would require Bitcoin to appreciate 28%, and exceed the price of USD 73,300.
Institutional support for Bitcoin intensifies
Among the most important initiatives and institutional announcements in support of Bitcoin of the last seven days, with probable impact on the rebound e of the price, CriptoNoticias highlighted that of BlackRock, the world’s largest asset management firm, which hinted through its spokesperson, Rick Rieder, its decision to invest in bitcoin. Furthermore, a new ETF proposal was filed with the SEC by investment bank Morgan Stanley and the New York Digital Investment Group (NYDIG).
CriptoNoticias also reviewed the new announcement of MicroStrategy debt issuance to acquire more bitcoin, for USD 900 million, a process that was effectively completed last Friday with a purchase for the amount of USD 1,050 million.
Featured tweet of the week
Peter Brandt is a professional futures trader since 1975, and the author and editor of Factor Report. His tweet this Tuesday raises the rarity of a parabolic rally on an arithmetic scale in the trading environment. But encountering three parabolic advances on a logarithmic scale (in which an ascending line represents an exponential advance) should be classified as a historical milestone.
The first of these rallies culminated in 2013, when bitcoin first reached $ 1,000. The second was between 2014 and 2017, when the peak reached almost $ 20,000. The third started in March 2020 and is in full swing.
Keys of the bitcoin market in charts
The analytical firm Glassnode published its third Bitcoin Uncharted report, commented by CriptoNoticias this Friday, February 19, which includes the latest graphics on some of the fundamental parameters of the network. These reveal movements of market participants, corresponding to the current bull cycle.
The graph shows the rise of BTC in the hands of short-term holders, whose number has grown recently. These respond faster to changes in the price of bitcoin than long-term holders, the study authors say.
Another great investor switch to gold for bitcoin
Jeffrey Gundlach, the Founder and CEO of DoubleLine Capital, an enthusiast of gold as a hedge against inflation, opined on Twitter that in the face of the money printing policy of the US monetary authorities, bitcoin could be “the stimulus asset.”
Gundlach’s opinion, reflected by CriptoNoticias, is important because DoubleLine Capital manages investment funds for more than 100,000 million dollars.
The devaluation of the dollar lar versus Bitcoin
We usually express the price of bitcoin in dollars or in the national currencies of each country. The price of bitcoin tends to rise, regardless of the national currency used. When reverse conversion is used and you want to know, for example, how many bitcoins are bought with a dollar, the resulting amount must be expressed in satoshis or hundred millionths of bitcoin.
The magnitude of the devaluation of the dollar is measured by observing how the amount of satoshis that a dollar can vary purchase. CriptoNoticias carried out an analysis on this process. 10 years ago, one dollar could buy 111 million satoshis or 1,111 BTC. Right now, at the current bitcoin price of $ 57,394.79, 1,742 satoshis are bought with one dollar. This implies that the dollar has devalued 99.99% against bitcoin in a decade.
Deutsche Bank will safeguard bitcoin and other cryptocurrencies
Germany’s largest bank, Deutsche Bank, revealed its custody and sale plans for bitcoin and other cryptocurrencies, according to a report by the World Economic Forum, reported here. The German bank will offer custody, trading and cryptocurrency loans, as well as voting, valuation and tax quotation services.
The platform that will handle both cryptocurrencies and fiat money in a single space, will be proposes “to serve as a bridge between the traditional and digital world, while providing its customers with easy accessibility and high security”.