The market value of crypto currency rose back up to $2 trillion this weekend as Bitcoin and other cryptocurrencies continue to ascend in value. Bitcoin, XRP, Cardano, and Dogecoin all saw significant climbs this past week, with Bitcoin at one point hitting $48,512 — its highest value since May 16.
Bitcoin was not alone in its climb, however — Cardano, the third ranked currency behind Ether and Bitcoin, has gone up 47% in the past week. XRP has gone up 61% and Dogecoin 18% in the same timeframe.
“Bitcoin continues above its critical 200-day moving average,” strategists from Fundstrat, an independent research firm, noted on Friday. “Also on our radar is Cardano (ADA), which after signaling smart contracts are soon to hit the platform earlier this week is up.”
The rise in the market follows the cryptocurrency industry’s unsuccessful attempt to change the crypto tax reporting rules in a U.S. infrastructure bill which allowed for broad oversight of cryptocurrencies.
“The price of Bitcoin was surprisingly resilient in the wake of the news,” said NYDIG Global Head of Research Greg Cipolaro on Saturday. “We interpreted this price action as extremely bullish,” and “we think the recognition of the crypto industry by lawmakers was ultimately a legitimizing event, one that should give investors comfort that this industry is here to stay,” added Cipolaro.
The digital currency market has definitely seen some positive gains this past week, but the $48,000 mark is nowhere near Bitcoin’s April all time high of $64,000. Fear, uncertainty, and doubt still plague the crypto market after it suffered a rough spell earlier this summer.
Expect instability when investing in crypto
Speaking recently to Greek Reporter, Lexy Prodromos, Executive Director at the Chicago Blockchain Center, a non-profit public/private initiative dedicated to blockchain advocacy, education and community innovation, said that bitcoin unpredictability is here to stay.
“It’s completely market determined. It’s a global network that’s not owned or operated by a single company or country or government. So price volatility is definitely a part of owning Bitcoin,” Prodromos told Greek Reporter.
“I think people are recognizing Bitcoin’s value and that it is a scarce digital asset, that will gain in value over the long run,” Prodromos said.
In fact, there are only 21 million bitcoins that can be mined in total, with the final coins being minted in around 2140. Once the circulating supply reaches its maximum, Bitcoin miners will no longer receive block rewards — since there’s only ever going to be 21 million of them.
The limited supply of Bitcoins is one of the reasons, proponents believe, that its value will keep on rising despite the occasional hiccup. Bitcoin and other digital currencies ability to climb despite new federal regulations shows that the market is resilient.