Crypto Market Cap hits new all-time high; BTC and ETH values soar

This Wednesday, the total market capitalization of all cryptocurrencies has skyrocketed to a new all-time high. After months of recovery, the Crypto Market and the two largest cryptocurrencies, Bitcoin and Ethereum, have recovered their previous value and have gone past what was already achieved in the past.

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The crypto market cap has reached a value of more than $2.63 trillion, which is around €2.26 trillion. Therefore, it has risen by 5.9% during the past 24 hours. At a certain point last summer, the market cap had plunged below $1.2 trillion, around €1 trillion.

After falling drastically, a couple of months ago, Bitcoin has been growing slowly, until it reached a staggering value of $66 974, which is around €57 476. At the same time, Ethereum crossed the $4 000 mark for the second time since May.

This was sparked by a pair of Bitcoin ETF approvals, in addition to China outlawing Bitcoin production. Why are these two factors so significant?

ETFs (exchange-traded funds) are a type of investment funds and exchange-traded products. In essence, they are traded on stock exchanges. This diversifies and strengthens the global cryptocurrency market, making its growth potential much higher.

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As to why China banning Bitcoin mining is significant – one of the most major problems with Bitcoin and other cryptocurrencies is that mining them requires an enormous amount of energy. The vast majority of the world’s supply of Bitcoin has been mined in China for years until now. The issue is, China primarily uses coal for energy production, which made Bitcoin a massive polluter. This is not going to be the case from now on.

This news is fantastic for the global cryptocurrency market and for cryptocurrency traders.