● Bitcoin Breaks $1 Trillion Market Cap
● Elon Thinks Bitcoin and Ethereum Overpriced
Welcome to this edition of Overbit Insights, where we try to bring you some of the biggest highlights and takeaways from the week of financial markets.
Our first story of the day is a massive milestone for the cryptocurrency industry. On Friday, 19 February, Bitcoin's price surpassed $53,650 per coin, which launched its total market cap over the $1 Trillion resistance, making it the sixth most valuable asset in the world.
Clearing such a massive hurdle has Bitcoin fanatics drawing comparisons to other assets, with some even planning the next ones to overtake. Some have compared Bitcoin's rise to Apple's, in which it took nearly 42 years for Apple to reach $1 trillion.
However, Apple reached $2 trillion just 26 months later, as some are quick to point out, hoping Bitcoin follows the same trajectory. Prominent software developer Jameson Lopp chimed in on Twitter, tweeting, "The first trillion is the hardest". The author of the famous stock-to-flow (S2F) model for Bitcoin had his sights set even further. According to Bitcoin.com news, Plan B tweeted this: "Straight line up to a $1trillion market cap. Bitcoin going for gold next ($10T)," he said.
Regardless of where one's sights may be set for Bitcoin's future, it's impossible not to recognize the significance of its market cap clearing the first trillion-dollar hurdle. Though the blockchain ecosystem continues to grow and develop, this first trillion will surely be a blip on the cryptocurrency timeline when looking back. Nevertheless, not so bad for an idea that started out on an anonymous email mailing list, and now the world's richest man is investing, which brings us to our next story on Elon Musk.
Tesla billionaire Elon Musk, whose tweets about meme-based cryptocurrency Dogecoin helped drive it to a $10 billion valuation, warned Bitcoin and Ethereum prices "seem high." Bitcoin prices have risen by almost 500 per cent over the last 12 months, partly due to Musk's pro-bitcoin and cryptocurrency tweets and Tesla's electric car business adding Bitcoin to its balance sheet. Musk made the Bitcoin and Ethereum price warning during a discussion on Twitter about the nature of money.
Earlier this week, Musk was trying to distance himself from Tesla's $1.5 billion Bitcoin-buy, which is significantly higher than the price of Bitcoin when it was announced. "Tesla's action is not directly reflective of my opinion," Musk said via Twitter in response to a Bloomberg interview with Bitcoin's chief executive and Binance's cryptocurrency exchange. "Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P 500 company…".
It's easy to see that the world's most influential are starting to double down on their Bitcoin bets, but while the market is increasing, it's essential to practice risk management during a bull market, and Overbit.com is here to guide you.
Thank you again for reading Overbit Insights, and we'll see you next week.