Crypto Today: Total market cap surpasses $300 billion, bitcoin consolidates below $10K
- Total market cap reaches new all-time highs.
- Bitcoin volume stays steady above 50%.
- Bitcoin's rally weighs on its rival bitcoin cash.
The total market capitalization of all cryptocurrencies surpassed the $300 billion mark on Monday, a 75% increase since it was $170 billion a month ago on October 27, amid record-setting rallies staged by the two most popular digital currencies, bitcoin and ether.
The BTC/USD pair, which traded quietly a little above the $8000 ahead of the weekend, gained more than $1500 in the last three days and reached a new all-time high at $9760. As of writing, the pair was trading at $9665, adding 3.75% on the day. Although there are no clear catalysts behind this upsurge, investors seem to be pricing the expectations of potentially rising demand in the short-term when institutional investors take an active role in the markets.
The ETH/USD pair also stretched its upside to a new record peak at $492 before going into a consolidation phase and was last seen trading at $475, up 1% on the day. In the meantime, bitcoin cash failed to take advantage of the increasing trading volume and is looking to close the day with a 6.5% loss.
ANZ analysts in a recent report argued that there were some potential systematic risks for bitcoin, explaining, "the underlying blockchain technology is highly promising but is running into problems in that the size of the ‘ledger’ information that needs to be transmitted and reconciled grows with every transaction. This means Bitcoin is taking a heavy toll not only on computing power but also on good old- fashioned electrical power as trading volumes explode. “Mining” (creating by reconciling) Bitcoin is using more electricity than Ireland, and rising."