Early August saw a significant rise in the cryptocurrency industry, with a total market value passing $1.9 trillion.
Data compiled by CoinGecko indicates that the overall market capitalization for all cryptocurrencies rose beyond $1.9 trillion on August 9, marking the first time since May 18 that this has happened.
Bitcoin (BTC) and Ether (ETH) have retested their mid-May market capitalization levels, in light of the recent strengthening recovery trend.
Bitcoin Regaining Previous Growth
CoinGecko saw Bitcoin’s market value surpassing $860 billion Monday, the first time it’s been that high since May 16. Bitcoin, which started the year with a market value of over $ 1 trillion, had its market cap plummet to around $ 560 billion as of July 20. As the price of Bitcoin went over $45,000, the total market value of Bitcoin (including non-currency assets) increased by almost 53%.
For the week of July 19, cryptocurrency markets saw a gain in market value, bringing the total worth of all cryptocurrencies to over $700 billion. According to market data, the market is now down by $ 700 billion dollars from its all-time high of $ 2.5 trillion on May 11.
The second-biggest cryptocurrency by market value, Ether, has risen more than 81% from July 20, when it was worth $204 billion, to Monday, when it was $369 billion. Following a recent update to the Ethereum network, the price of ETH rose 50% as investors sought to upgrade to address problems like as excessive transaction costs.
Possible Catalysts for the Run
Since Tesla CEO Elon Musk announced on July 22 that his aerospace company, SpaceX, owned Bitcoin, the latest surge in the crypto markets occurred. The CEO went on to say that, given the substantial decrease in non-renewable energy required for Bitcoin mining, Tesla plans to restart cryptocurrency payments for vehicle sales.
It was previously speculated that Tesla’s CEO Elon Musk’s decision to cease accepting bitcoin payments was a significant contributing factor to the price collapse in May.
On average, the value of Tesla’s 42,000 Bitcoin investments now stands at $31,700 per coin. After Bitcoin reached its all-time high of $64,000 in April, Musk’s wager had gained a realized and unrealized gain of over $1.5 billion, with an approximate percentage gain of 99.8 percent.
However, as the price of Bitcoin was drifting lower, the value it had provided diminished, and on June 20, it had reached a near-multi-month low of $29,360.
Then, Bitcoin regained its previous growth. Ten days later, on June 30, Bitcoin had appreciated to $35,041, resulting in a 19% increase in the value of Tesla’s cache. On Aug. 6, after the market closed, Bitcoin went up another 22% to $42,831.