The world’s largest digital currency Bitcoin has surged above $50,000. Bitcoin’s price increased by more than 3% on Tuesday and is now worth more than $50,000, for the very first time.
About a month ago, Bitcoin surged to $40,000 for the first time, doubling in value and pushing the total market value of cryptocurrencies beyond $1 trillion. This increase was primarily driven by leverage on derivatives, and spot market volumes on institutional-focused exchanges such as Coinbase Pro.
As at last week Thursday, Bitcoin had blown past $48,000. The world is awestruck at the spontaneous increase which, according to coin metrics, now stands at an all-time time high price of $50,487.
With this latest development, many investors now have the conclusion that the latest bull run is different from past rallies.
Crypto investors believe that this increase is different from the 2017 surge. In late 2017, the price of Bitcoin surged to about $20,000, but then lost more than 80% of its value in 2018. The skyrocket of Bitcoin experienced in 2017 is believed to be fueled by retail speculations, unlike this current surge of Bitcoin which is being driven by high demand from huge companies and institutional investors. Major companies like Tesla, MasterCard, and BNY Mellon have invested in Bitcoin, resulting in Bitcoin’s boost. BNY Mellon is the latest major financial firm to show support for digital currencies.
About a week ago, Tesla revealed that it had bought bitcoin worth $1.5 billion, as well as its plans to now accept the digital coin as payment for its products. Mastercard has also stated that it will soon open up its network to some digital currencies. PayPal and BNY Mellon have also made big moves to support crypto. Tesla’s purchase of Bitcoin has triggered speculations if other huge companies will follow suit.
Bitcoin is up more than 60% since the start of the year after multiplying in fourfold in value in 2020. The digital coin’s intensive rally has been boosted by increased demand from institutions, according to bulls, who say that more experienced investors are warming to the cryptocurrency due to the perspective that Bitcoin is a store of value similar to gold.