Prices of bitcoin traded flat on Monday as investors looked for more clues after the recent rally in the digital asset took it past the $58,000 level for the first time on Sunday. The world’s biggest digital currency hit an all-time high of $58,640.77, before paring some of the gains, and was trading at $56,566.83, up 0.4% at around 1.45pm, as per cryptocurrency tracker CoinGecko.
“Bitcoin seems impervious to the barrage of fear, uncertainty and doubt (FUD) waged against the industry,” said Paolo Ardoino, CTO at cryptocurrency exchange Bitfinex.
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Bitcoin on Friday for the first time hit a market capitalization of $1 trillion fuelled by interest from major corporations such as Tesla, MasterCard, Paypal and BlackRock.
“Bitcoin hit a $1 trillion market cap last week, a milestone which took big companies such as Apple, Microsoft and Google decades to reach. It took bitcoin only 12 years. Compared to them, bitcoin reached a trillion without as many people knowing about it. By the time bitcoin becomes as mainstream, it may have a much larger pool of interested investors. Because of that, $1 trillion may be just the beginning,” said Vikram Rangala, CMO at ZebPay.
“Bitcoin has another thing going for it, which is absolute scarcity. There’ll be only 21 million bitcoins, ever. As more investors buy it up, the remaining supply goes down further. As more people learn about and start wanting bitcoin, the supply will go down. Price is likely to go up in the long-term,” he added.
Meanwhile, other major cryptocurrencies such as ether, tether and ripple were trading up to 0.20% in the green.
For the year, bitcoin has delivered a return of around 92%, while it is up 16% in the last seven days.