Crypto Market Hits $3 Trillion in Value for First Time Amid Bitcoin Comeback

All of the world's cryptocurrencies combined are worth a total of $3 trillion Monday following recent market growth.

The crypto market value, known as its market cap, is driven largely by Bitcoin, which itself has a market cap of more than $1 trillion and reached an all-time high price in October.

The $3 trillion crypto market valuation is according to CoinGecko, a cryptocurrency price tracking website. It appears to be the first time the $3 trillion point has been reached.

It should be noted that not all crypto price trackers show the same figures. CoinMarketCap, an authoritative crypto price site, puts the overall cryptocurrency market cap slightly lower at $2.8 trillion.

In any case, both sites show that the market's valuation has been trending upwards over the past few weeks. CoinGecko shows the market has more than doubled in value from mid-July, when it was worth around $1.35 trillion.

The growth pattern appears similar to that of Bitcoin. The token had plummeted in value earlier this year, having reached what was then an all-time high of over $63,000 in April before sinking to less than $30,000 in July.

Bitcoin has since recovered and as of 6:15 a.m. Monday morning was worth around $66,150, up roughly 6.6 percent over the previous 24 hours, bringing its market cap to $1.24 trillion according to CoinMarketCap. The token's all-time high is $66,930, which it reached on October 20 this year.

Cryptocurrency prices are notoriously volatile and experts have previously warned Newsweek about the risks and dangers associated with trading them.

Despite the crypto market's growth in value there are some significant issues it faces at the moment. One is the $1.2-trillion infrastructure bill that was passed in Congress on Friday last week and is currently awaiting the signature of President Joe Biden.

It includes an amendment to tax code section 6050I which, according to CoinTelegraph, requires businesses and individuals to tell the U.S. Internal Revenue Service whenever they receive cash or a bank transfer in excess of $10,000 and include details of who sent it.

The amendment reportedly makes this clause apply to digital assets as well, and critics have noted this could cause issues in the world of cryptocurrency which values anonymity.

CoinDesk reported that the Treasury Department still needs to outline how businesses and other entities will have to comply with the bill.

Meanwhile the increased value of Bitcoin comes as environmental concerns have been pushed to the fore amid the COP26 world climate meeting last week, which was touted as a make-or-break moment in the fight against climate change.

Bitcoin is infamous for the amount of energy it uses since huge quantities of computing power are needed to create new ones. According to Cambridge University data, power demand for the Bitcoin network has been increasing steadily since this summer and is on course for an all-time high.

A photo of a visual representation of a Bitcoin against a background of binary code, taken in December 2017 in Paris, France. Bitcoin has recovered in recent weeks after crashing earlier this year. Chesnot/Getty