(Bloomberg) - The market capitalization of the virtual currency market surpassed $1 trillion for the first time on July 7. Bitcoin once again hit a new record high.
According to data from CoinGecko, the market capitalization of virtual currencies has quintupled in the past year. Strategists believe that demand from speculative small traders, trend-following quantitative funds, and wealthy individuals, combined with the entry of institutional investors, has boosted the price.
Bitcoin temporarily rose 4% to over $37,000. Bitcoin's market capitalization is about two-thirds of all virtual currencies, while the second largest, Ether, has about 14%. Ether has risen 62% so far this year.
The price of virtual currencies has been rising amid fiscal and monetary stimulus. JP Morgan Chase has estimated that the long-term target for bitcoin is $146,000.