The cryptocurrencies rallied on Thursday, with market capitalisation gaining 3.9 percent to reach $2.4 trillion as of 1150 hours GMT.
The largest cryptocurrency Bitcoin price went up by 2.10 percent to $49,310. With this increase in price, the market capitalisation of the biggest crypto has reached 932 billion.
Ether, the world’s second-largest cryptocurrency by market capitalisation, jumped by 5.55 percent to reach $4,075. With this increase in price, the market capitalisation of ETH has reached $479 billion.
Similarly, XRP price gained 2.95 percent to reach $0.833. The market capitalisation of XRP stands at $83.2 billion after this increase.
On the other hand, Cardano (ADA) price surged by 5.85 percent to $1.33. Its market capitalisation has reached $43.6 billion with this increase.
Dogecoin (DOGE), which plunged over 12 percent a day earlier, gained 1.89 percent to reach $0.183. With this increase in price, the market capitalisation of DOGE has reached $24.2 billion.
Meanwhile, a senior official at the Bank of England has questioned the value of Bitcoin, which soared to $68,000 last month, citing the currency’s volatility and warning that digital assets could theoretically or practically drop to zero. According to Deputy Governor Sir Jon Cunliffe, fast-growing digital assets could pose a danger to the established financial system.
In an interview, Cunliffe said that at present around 0.1 percent of British households’ wealth was held in cryptocurrencies. And, if their value was to fall sharply, it could have a knock-on effect.
Cryptocurrencies are “growing very fast,” he explained, and are being integrated into the financial system; a significant change in price could affect other markets and established financial players. “It’s not there yet, but it takes time to design standards and regulations,” Cunliffe added.
Not everyone shares Cunliffe’s grim outlook. After reaching its peak price in November, Bitcoin dropped back below $46,000 early this month. However, many experts believe the asset is on its way to passing the $100,000 mark. Bloomberg predicted earlier this year that Bitcoin could rise as high as $400,000 by the end of 2021.
Kamran Nazir Malik is a law graduate and master in Economics. He is associated with TLTP News Wire Service as correspondent since 2018.