Bitcoin (BTC) price surpasses $ 51,000 to hit a new all-time high

Igor Golovniov | LightRocket | fake images

Bitcoin continued to climb on Wednesday, breaking above the $ 51,000 level for the first time.

The red-hot cryptocurrency hit a new record price of $ 51,715 around 4:50 a.m. ET, according to data from Coin Metrics. Last time it traded 5% higher at $ 51,222.

Bitcoin was created in 2009, shortly after the global financial crisis. It has gone from a protest against the banking system to a kind of “digital gold” that is starting to gain popularity among major investors.

On Wall Street, the major investment banks appear to be embracing bitcoins. JPMorgan recently said that it is seriously considering the asset class, while Goldman Sachs has also shown interest in cryptocurrencies. Meanwhile, a division of Morgan Stanley is considering adding bitcoin to its list of possible bets.

Meanwhile, companies like PayPal and Mastercard have made major moves to back cryptocurrencies. And Tesla said last week that it had invested $ 1.5 billion in bitcoin and planned to accept the digital currency as payment for its products.

Bitcoin’s latest rally has reminded many investors of its massive rise to nearly $ 20,000 in 2017, followed by a steep decline the following year that saw the digital currency lose 80% of its value.

But since then, the world’s most valuable cryptocurrency has staged a fierce comeback, more than quadrupled in 2020 and gaining more than 70% since the beginning of this year.

Proponents of Bitcoin say it is due to increased demand from institutional investors, as well as the corporate purchase of the digital currency from companies such as Tesla, Square, and MicroStrategy. Skeptics, on the other hand, fear that Bitcoin may be the largest market bubble in financial markets.

JPMorgan strategists said in a note Tuesday that unless bitcoin’s volatility starts to wane, its current price “looks unsustainable.” Bitcoin and other cryptocurrencies have earned a reputation for their extreme price swings.


Source link