The cryptocurrency market cap has passed $160 bln for the first time, as trading platforms post new records.

Data from Coinmarketcap and Coin Dance show market activity and growth spiralling in the week ending Aug. 26.

The growth to almost $162 bln caps an extraordinary month for cryptocurrency, which began in August below $90 bln.

ICO token popularity has contributed to the sudden increase, with Bitcoin dominance falling below 50 percent once again in the second half of the month to currently sit at just below 45 percent.

At the same time, trade volumes for Bitcoin shot up last week in line with steadily increasing prices.

Localbitcoins posted its second-highest weekly figure of $44.4 mln for the seven days to Saturday, while fellow platform Paxful established a new all-time high of $8.7 mln.

Funds flowing into cryptocurrency versus traditional assets has become an increasing talking point in recent weeks.

Mainstream investors have gone on record to state their preference for crypto over gold or commodities for the rest of 2017, while figures highlighted by Chinese exchange BTCC today show the extent to which gold has taken a back seat for <Read More>

The withdrawal of funds from stocks and precious metals has coincided with the massive price increase of Bitcoin and other cryptocurrencies. It seems that investors have realized that Bitcoin is a more stable ‘store of value’ investment than gold.

CNBC has reported that the stock market has seen the largest withdrawal rate since 2004, with more than $30 bln being taken out of the markets over the past 10 weeks. The major withdrawal also included a huge abandoning of precious metals.

Precious metals at loss

Private client allocation to precious metals has seen a massive reduction, with portfolios holding 10 percent in 2013 being reduced to below two percent in recent weeks.

The precious metals investment decline has coincided with a removal of funds from the stock market overall, with investors choosing to pull back from the market, though the market continues to post gains. Concerns about current market levels and monetization policies may be fueling to flight.

Crypto-investment opportunities

Blockchain technology is producing new investment opportunities <Read More>

No one knows if the recent rally is the last pump before the bubble pops, or indeed if it is the tipping point. But, Octogon Strategy Dave Chapman is seeing a new breed of investors flowing towards cryptocurrency that makes him believe Bitcoin is growing up.

 

Chapman’s company, which specializes in commodity investment, especially digital currencies, is seeing a new flow of institutionalized money opening accounts with Octagon. These new account holders are the type of people that make it look like Bitcoin is growing up, not preparing to pop.

Heated market

The talk and debate around Bitcoin, especially at big rallies, is whether the digital currency is preparing to pop on the same level as Tulip Mania, the dotcom bubble and other such market crashes.

Chapman admits that the market is a heated one, but it is also a very different one.

“I don’t think we are looking at a bubble at all,” Chapman told Bloomberg. “I would say that the market is heated and a lot of people do think it is a bubble and it is sometimes hard for me to defend that position. But what I will say we are potentially at the tipping point.”

$10,000 not out of sight

For Chapman, the idea thrown around that Bitcoin could hit $10,000 by the end of the year is not as absurd as many think.

“I don’t think it is unimaginable to think we will have a five figure headline at the end of the year,” Chapman added. “There has been an enormous amount of investment that has come into <Read More>