The representation of the virtual currency Bitcoin is seen on a motherboard in this image illustration taken on April 24, 2020.
Given Ruvic | Reuters
Bitcoin crossed a record $ 60,000 on Saturday morning, continuing its rally as major companies and financial institutions embrace cryptocurrencies.
Bitcoin, the world’s largest cryptocurrency, was at $ 60,415.34 as of 7:25 a.m. ET, according to Coinbase, rebounding from a drop in late February that followed a record earlier that month.
The digital currency is up 963% in the last 12 months, according to Coinbase. Its value topped a trillion dollars last week for the second time this year.
Bitcoin’s rally is due in part to increased adoption by large institutional investors and businesses and speculative demand. Tesla has bought $ 1.5 billion worth of bitcoins and plans to accept the digital currency as payment for its products, a move that sparked more widespread interest.
Mastercard also said it will open its network to some digital currencies. And PayPal and BNY Mellon have made some moves in the space.
Bitcoin believers argue that the current rally is driven by demand from institutional investors and is different from previous rallies, such as when Bitcoin soared to nearly $ 20,000 in late 2017 before losing around 80% of its value on next year.
Others argue that bitcoin and other cryptocurrencies have no intrinsic value and are concerned that bitcoin may be one of the largest stimulus-driven market bubbles in history.