Bitcoin (BTC) has reached a new record high of $68,000, indicating a bullish trend and the potential to surpass $69,000. BTC's market capitalisation has also reached an unprecedented level, surpassing $1.3020 trillion. This milestone shows that BTC continues to dwarf global currencies and assets.
The popularity of bitcoin has enabled BTC to overtake Meta Platforms, Facebook's parent company, in terms of market capitalisation. Moreover, reports show that BTC continues to outperform currencies around the world.
More specifically, BTC set a new record against 70% (14 out of 20) of the G20 currencies. However, the focus remains on its value against the US dollar (USD).
Growing interest in Bitcoin
CNBC's Mad Money host Jim Cramer attributes this phenomenon to traders buying BTC as a hedge against fiat currencies. Amid frenetic trading activity, Coinbase Exchange has crashed again, with users reporting latency issues and zero balances. However, the platform assured users that their funds remained safe.
Momentum for AI tokens began with the introduction of ChatGPT in November 2022. The rebound in market sentiment has further amplified their growth. However, questions remain about the long-term viability of these AI altcoins.
As the value of BTC reached new heights, the value of artificial intelligence (AI)-related altcoins also increased significantly, with many recording double-digit growth percentages.
How Bitcoin's Rally Has Impacted Other Cryptocurrencies
Following bitcoin's remarkable rise to $68,000, there has been a profound ripple effect across digital currencies, influencing in particular those linked to artificial intelligence (AI). As bitcoin continues its unprecedented rise, surpassing the market capitalisation of major companies, renewed interest has taken hold of the wider digital currency landscape.
Historically, rises in cutting-edge digital currencies such as bitcoin often catalyse market movements. The recent surge in the value of bitcoin has triggered a wave of buying and a surge in the prices of various alternative coins.
In particular, AI-linked currencies have benefited from the excitement generated by advances in natural language processing and other AI technologies.
However, while optimism is high, alternative AI coins face significant hurdles in establishing their longevity. Critics point to the lack of viable products, tangible applications, strong development teams and sustainable business models for many of these currencies.
As new AI technologies rapidly emerge, converting these capabilities into cryptographic assets and decentralised networks poses considerable technical and operational challenges.
Nevertheless, Bitcoin's record-breaking performance has given temporary support to alternative AI currencies. Questions remain, however, about their ability to carve out a distinct path for themselves in the long term and independently.