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Within the bullish rally that bitcoin has unfolded since mid-March 2020, the first cryptocurrency achieved this Friday, February 19, one of its most significant milestones: taking its market capitalization above a trillion dollars, as reported in this medium. .
It is significant that an emerging asset, With only 12 years of existence, it is measuring itself with the first corporations in the world by market capitalization. Bitcoin has joined the exclusive club of global organizations valued at more than a trillion dollars, which had only 5 members until this Friday: Apple, Saudi Aramco, Microsoft, Amazon, and Google. Bitcoin captured 6th place among the billionaire companies, surpassing Chinese internet giant Tencent.
Bitcoin accomplished in 12 years, which cost the traditional corporate world more than two centuriesSince the creation of the New York Stock Exchange in 1792, Apple was the first company that exceeded a trillion dollars, just in 2018. At the time of writing this article, the price of bitcoin is USD 55,580. This price carries its market capitalization above USD 1 trillion, as reported by CriptoNoticias this Saturday 20.
The return of the bitcoin price in this historic week was 17.52%. Source: CoinMarketCap.
According to the ranking of financial institutions by market capitalization, Bitcoin has more market value than the following US banks combined: JPMorgan Chase, Bank of America, Wells Fargo and Citigroup.
To take fifth place and displace Google, which has a market capitalization of $ 1.41 trillion, Bitcoin would require to appreciate 28%, and exceed the price of $ 73,300.
Institutional support for Bitcoin intensifies
Among the most important initiatives and institutional announcements in support of Bitcoin of the last seven days, with a probable impact on the price rally, CriptoNoticias highlighted that of BlackRock, the world’s largest asset management firm, which hinted through his spokesperson, Rick Rieder, his decision to invest in bitcoin. Furthermore, a new ETF proposal was filed with the SEC by investment bank Morgan Stanley and the New York Digital Investment Group (NYDIG).
CriptoNoticias also reviewed the new announcement of MicroStrategy’s debt issuance to acquire more bitcoin, for USD 900 million, a process that was effectively completed last Friday with a purchase for the amount of USD 1,050 million.
Featured tweet of the week
Peter Brandt has been a professional futures trader since 1975, and the author and editor of Factor Report. His tweet this Tuesday raises the rarity of a parabolic rally on an arithmetic scale in the trading environment. But encountering three parabolic advances on a logarithmic scale (in which an ascending line represents an exponential advance) it should be classified as a historical landmark.
The first of those rallies culminated in 2013, when bitcoin first hit $ 1,000. The second was between 2014 and 2017, when the peak reached almost $ 20,000. The third started in March 2020 and is in full swing.
Keys to the bitcoin market in charts
The analytical firm Glassnode published its third report Bitcoin Uncharted, commented by CriptoNoticias this Friday, February 19, which includes the latest graphics on some of the fundamental parameters of the network. These reveal movements of market participants, corresponding to the current bull cycle.
The highlighted area in the chart shows the rise of retail investors. Source: Bitcoin Uncharted.
The graph shows the rise of BTC in the hands of short-term holders, whose number has grown recently. They respond faster to changes in the price of bitcoin than long-term holders, the study authors say.
Another big investor switches to gold for bitcoin
Jeffrey Gundlach, the founder and CEO of DoubleLine Capital, an enthusiast of gold as a hedge against inflation, opined on Twitter that in the face of the money printing policy of the US monetary authorities, bitcoin could be “the stimulus asset.” .
Gundlach’s opinion, reflected by CriptoNoticias, is important because DoubleLine Capital manages investment funds for more than 100,000 million dollars.
The devaluation of the dollar against Bitcoin
We normally express the price of bitcoin in dollars or in the national currencies of each country. The price of bitcoin tends to rise, regardless of the national currency used. When using reverse conversion and you want to know, for example, how many bitcoins are bought with a dollar, the resulting amount must be expressed in satoshis or hundred millionths of bitcoin.
The dollar’s fall against bitcoin has been clear in recent years. Source: usdsat.com.
The magnitude of the dollar’s devaluation is measured by observing how the number of satoshis a dollar can buy varies. CriptoNoticias carried out an analysis on this process. 10 years ago, one dollar could buy 111 million satoshis or 1,111 BTC. Right now, at the current bitcoin price of $ 57,394.79, 1,742 satoshis are bought with one dollar. This implies that the dollar has been devalued 99.99% against bitcoin in a decade.
Deutsche Bank to safeguard bitcoin and other cryptocurrencies
Germany’s largest bank, Deutsche Bank, revealed its plans for the custody and sale of bitcoin and other cryptocurrencies, according to a report by the World Economic Forum, reported by this medium. The German bank will offer custody, trading and cryptocurrency loans, as well as voting, valuation and tax listing services.
The platform that will handle both cryptocurrencies and fiat money in a single space, aims to “serve as a bridge between the traditional and digital world, while providing its clients with easy accessibility and high security.”