Cryptocurrencies top $1trn amid surge for Bitcoin 

Cryptocurrency is gaining traction with mainstream investors who are increasingly convinced Bitcoin will be a long-lasting asset, and not a speculative bubble

Bitcoin has jumped over 900% to $38,655 in the latest session, from $3,850 in March

The total market value of all cryptocurrencies rose above $1 trillion (€812bn) for the first time as Bitcoin surged to a record high, according to data by crypto coin trackers CoinMarketCap and CoinGecko.

Bitcoin has jumped over 900% to $38,655 in the latest session, from $3,850 in March, as governments increase speed to blunt the economic impact of the coronavirus. 

This has raised fears about rising inflation and dollar debasement.

The cryptocurrency is also gaining traction with more mainstream investors who are increasingly convinced that Bitcoin will be a long-lasting asset, and not a speculative bubble as some analysts and investors fear.

Sergey Nazarov, co-founder of Chainlink, a decentralised network that provides data to smart contracts on the blockchain, said there is a “lack of faith in traditional institutions that is driving this large rally towards cryptoassets”. 

“While outsiders may view the cryptocurrency industry being valued at over $1tn as an incredibly significant milestone, in actuality our space is still in one of its very early stages of development and growth,” Mr Nazarov said.

The market cap of all cryptocurrencies rose 10% to $1.042tn today, data from CoinMarketCap shows. Bitcoin accounts for around 69% of the total market cap of the total. It is followed by Ethereum with a 13% share. 

• Reuters