At the time of writing, bitcoin – the world’s number one digital currency by market cap – has surged to a new all-time high, having broken $50,000 and now trading for just over $51,000. To be fair, the asset has done this once or twice in the past, but it was always followed by a quick drop to the high $48,000 range, suggesting that bitcoin either didn’t have the momentum we all thought it did yet, or the change happened way too fast.
Bitcoin Has Shot Up Again
Bitcoin has shown in previous years that when a sudden and unexpected rise occurs, it doesn’t always stay at its new level. However, this time around, the currency appears to have broken $50K and is remaining there. The asset is growing stronger and stronger every day. It has been on a serious rise since last October, and there’s nothing to suggest that this momentum will die out anytime soon.
The primary thing that appears to be pushing bitcoin forward as of late is the fact that it’s garnering so much interest and attention not from retailers, but from institutional players. In the past, these figures and companies have always been opposed to bitcoin and other forms of crypto, citing its volatility as one of the most dangerous financial aspects out there.
Many were concerned that with bitcoin’s vulnerability to price swings, there was too much risk of losing one’s assets overnight. However, these past few months have shown that bitcoin can withstand just about anything. With the coronavirus pandemic battering our global economy for about a year now, the currency experienced a major drop last March along with stocks and gold. However, it only took about two months for bitcoin to recover, shooting up from below $4,000 to a little over $9,000 in May of 2020.
By October, the asset was trading for around $10,000. After having experienced a particularly bearish September, the currency rose into the $13,000 range following news that PayPal would allow its customers to not only trade cryptocurrency, but that they could use crypto to potentially purchase goods and services, thereby bringing crypto closer to its primary goal of replacing fiat.
This Run Feels Very Different
From there, the asset rose to unprecedented heights, reaching the $40,000 range by the end of December. Following a few weeks of struggle early in the new year, the currency rose back to this mark and is now trading for about $10,000 more.
Among the latest news likely contributing to its newfound bullish behavior is electric car company Tesla investing more than $1.5 billion in the digital coin. Furthermore, Coinbase – one of the largest and most popular cryptocurrency exchanges on the west coast – is getting ready to go public on the stock exchange and is planning to pursue a direct listing.