The cryptocurrency market experienced a strong rally over the first weekend of 2021, with Bitcoin (BTC) reaching a new all-time high of $33,333 on Saturday afternoon, before pulling back slightly to hover above $32,000. The total market capitalization of all digital assets surpassed $800 billion, spiking more than 11% in a single day. Bitcoin alone accounted for approximately $602 billion in market value, maintaining a dominance ratio of just over 71%.
Major Altcoins Follow Bitcoin's Lead
Ethereum (ETH) climbed to $777, with a market cap of about $88.6 billion, up 21% over the week and 119% over the past 90 days. XRP continued to suffer from the SEC lawsuit, dropping to $0.219 per token, down 24% weekly. Litecoin (LTC) traded at around $137, gaining 5.2% this week and 191% over the last three months. Polkadot (DOT) was a standout performer, surging 77% in the past week to $9.08. Bitcoin Cash (BCH) changed hands at $362, up 9% weekly, with a market cap of $6.7 billion.
Market Participants React to New Highs
VanEck digital asset strategist Gabor Gurbacs noted that Bitcoin's market cap now exceeds that of any of the top ten global banks. Mike Dudas, CEO of The Block, revealed that he sold 10% of his Bitcoin holdings as part of a long-standing plan. “I plan to hold much of my BTC forever, but I also want to enjoy life with my family in 2021,” he said. Kraken Exchange celebrated the milestone with a tweet: “#Bitcoin ATH $33k! Next stop the moon?” Trader Mr. Anderson predicted that Bitcoin would see a $10,000 daily candle in 2021.
Peter Schiff Remains Unimpressed
Not everyone was celebrating. Long-time Bitcoin skeptic and gold advocate Peter Schiff reiterated his bearish stance. He argued that if holders never sell, the price is irrelevant, and that Bitcoin will eventually go to zero. Schiff stated, “Gold is a store of value as people buying gold now will be able to sell it in the future to buyers who actually need to use gold as a metal. Bitcoin’s value comes from the belief that it can be resold at a higher price in the future to speculators willing to make the same bet.” He also claimed that most Bitcoin buyers don’t realize they are in a bubble and will fail to exit with profits.
Despite Schiff's criticisms, the crypto market continued to show resilience, with the total market cap holding above $800 billion and investor sentiment remaining optimistic for the rest of 2021.