Bitcoin tops $40,000 on continued monetary easing

Bitcoin slides more than 5% after topping $40,000 for first time

According to data from platform AssetDash, the total value of all Bitcoins in circulation now stands at US$779.6bn, above Facebook's market cap of around US$756.6bn.

However, the cryptocurrency faces a more hard fight if it wants to crack the top five, with the sixth most valuable entity, Tesla Inc (NASDAQ:TSLA) valued at US$818bn while the fifth place constituent, Google parent Alphabet Inc (NASDAQ:GOOGL), holds a market cap of US$1.2 trillion, US$428bn higher than Bitcoin. Treasury management has been turned upside down as treasurers try to determine a strategy to manage their liquid assets in a period of global negative rates and quantitative easing, and Bitcoin is gaining favor as an alternative to fiat money markets or fixed-income investments. The last US$10,000 move only took four days.

"The recent Bitcoin rally that has today crossed the record $37,000 mark has positively impacted the Indian market".

The world's most popular digital currency slid to as low as $36 618.36 on Bitstamp exchange before bouncing back.

Bitcoin already has surged 32% in January, after registering a return in 2020 of around 300%. It topped $30,000 for the first time on January 2, after surpassing $20,000 on December 16.

The value of Bitcoin is worth more than $740 billion just behind Tesla at $758.26 billion, and digital cryptocurrency markets are worth more than $1 trillion, according to CoinGecko. "And so just in situation, we genuinely do require to have some form of insurance we can keep underneath our pillow that offers us some obtain to an uncorrelated hedge."Bitcoin hit a new all-time substantial of more than $41,000 on Friday early morning". The effect could be similar in corporate markets, if those firms that have announced meaningful treasury allocations see their equity price outperform others, more firms will be sure to follow.

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