Bitcoin has constantly outperformed gold in terms of profit margins. As a result, the digital asset swiftly surpassed the physical asset as the favored way of inflation hedging. When the news of Russia’s invasion of Ukraine first emerged last week, it sent a shockwave through the financial markets. Other digital assets were no exception, with prices plummeting in the aftermath of the revelation. However, gold, which had shown its worth through hundreds of years, had offered the safe haven that investors needed at the time.
Bitcoin Market Cap Is Increasing
The overall market capitalization of cryptocurrencies has already surpassed $2 trillion, thanks to a wide run in the digital asset market and bitcoin’s price of about $45,000.
The last time the crypto market was at this place was in August. Bitcoin has increased by about 14%, while ether has increased by 12%. Capital constraints in Russia, according to analysts, were part of the cause for the quick increase. Some of BTC’s biggest storylines, which it relies on to keep its price afloat, have been debunked in recent weeks—BTC myths have been debunked. BTC and other digital currencies have gotten so entwined with the old financial system that they now move in lockstep with the majority of stock exchanges. After a big gain on Tuesday, Bitcoin is headed towards the $45,000 level amid growing volatility in riskier asset sectors.
The largest cryptocurrency by market capitalization is among the digital tokens’ second-best performers, increasing as much as 17% in the previous week. Only Terra (LUNA) has outperformed Bitcoin, with a gain of nearly 70%.
Bitcoin’s overall market capitalization is approaching $900 billion. However, according to the statistics, crypto-asset transactions have plummeted more than 12% in the previous 24 hours, with Bitcoins worth $33.5 billion changing hands. The $45,000 threshold for the digital asset, according to crypto experts, should not be considered as a surprise given global volatility and mounting inflation fears.