Global Worth of Cryptocurrencies Reaches $700 Billion This Week

The combined total of all cryptocurrencies has reached a total value of more than $700 billion dollars this week, which has left the public stunned.

The market reached the $700 billion landmark on Wednesday the 3rd of January, but suffered a correction, taking the total down to $683 billion on Thursday.

This total value of cryptocurrencies is known as market capitalization. Market capitalization is used for measuring the value of an asset by assessing the amount of an asset in circulation by each token issued. For this reason, the market capitalization for all coins surged over the last few months, as there are now more than 1,300 different tokens to choose from.

One market analyst, Mati Greenpan who works at the firm eToro said that cryptocurrencies have become hot investments for people right now.

“Although over Christmas we observed a slight correction to the total cap, altcoins and Bitcoin seems to have recovered. Some altcoins have set new records for their growth, which is causing many people to consider buying these coins over Bitcoin.”

Bitcoin experienced a price drop of $8,000 in just a few days, just after it skyrocketed in early December.

Today, it appears to have bounced by back by the setbacks it faced, after it was endorsed by an angel investor fund by billionaire Peter Thiel. Thiel had made millions of dollars in profits from his Bitcoin holdings when he invested more than USD $20 million in the asset.

The gains that Bitcoins has received has remained stable this week, with the coin gaining around 1.5% of its value to close out at $15,000 per token.

However, not all of the news for Bitcoin investors is positive.

Although the total market value has exceeded $700 billion dollars, the amount that Bitcoin contributes to that total is at a historic low. It sunk to just 36% this Tuesday as altcoins surged in price. There is some evidence to suggest that there’s now a trend favoring altcoins over Bitcoin, which for so long has been the ‘Gold Standard’ of currencies that every alt was measured against.

The reasons for this development are numerous. One theory is that people see Bitcoin as being an expensive investment that has exceeded its room for growth. People just entering the crypto market as investors are looking for easy profits, so they could be buying cheaper, but more speculative altcoins in hopes that they will be the ‘next Bitcoin.’

Another reason for the public’s distaste for Bitcoin is due to the currency becoming a staple in investment markets. Ordinary investors can now buy and sell Bitcoin futures, and some exchanges are even opening up their own crypto desks.

These developments in the tastes of their user base could put some people off Bitcoin, as it could stabilize its price from going upwards – which is something that every investor is worried about and sensitive to.