• April 21, 2024

Bitcoin price hits new record, clears $60,000 milestone

Bitcoin prices rose to a record high on Saturday, hitting a psychological milestone of $ 60,000. This could reaffirm bullish crypto asset investors that the path is higher for digital assets.

After Bitcoin fell back below $ 60,000 during the day on Sunday, Bitcoin
BTCUSD, -0.11%
was last traded at $ 60,260 after CoinDesk hit a new all-time high of $ 61,732 on Saturday.

The new brand for the world’s most popular crypto comes after a relatively idle period for the asset, whose gains are due to greater adoption by a group of prominent institutional investors.

The jump above $ 60,000 also means it took Bitcoin less than a month to cross another $ 10,000 milestone after hitting $ 50,000 in mid-February.

Bitcoin has passed the $ 20,000 mark, which it had nowhere near since December 2017 three months ago.


Bitcoin $ milestone

September 2017

$ 5,000

November 2017

$ 10,000

December 2020

$ 20,000

January 2, 2021

$ 30,000

January 7, 2021

$ 40,000

February 16, 2021

$ 50,000

March 13, 2021

$ 60,000

There’s no immediate catalyst for Bitcoin’s recent surge, but interest in blockchain, the technology that underlies the decentralized asset, has exploded.

So-called non-fungible tokens, or NFTs, which use block chain to authenticate ownership of assets and collectibles, have become mainstream. The popularity of the once niche area was highlighted last week when the artwork by Mike Winkelmann known as Beeple, sold for a record $ 69.3 million at an online Christie’s auction of third most expensive artwork by a living artist and the most expensive NFT-related sale.

However, it remains to be seen whether the NFT craze marks a new level of irrational exuberance in cryptos.

NFTs are usually tied to a different crypto asset ether
ETHUSD, + 0.48%
According to experts, the passion for cryptographic authentication has boosted the digital asset market across the board.

In a broader sense, Bitcoin’s rise was tied to gaining institutional interest from Tesla Inc.
TSLA, -0.84%,
that said it bought $ 1.5 billion in bitcoins. Meanwhile,

PayPal Holdings Inc.
PYPL, -1.37%
The cryptocurrency platform was opened to all US customers back in November after a closer rollout.

Several high profile Wall Street investors, including Stanley Druckermiller and Paul Tudor Jones, have also chosen Bitcoin. Famous investor Bill Miller, founder of Miller Value Partners, in a letter to customers last year he reiterated his bullish outlook on Bitcoin.

Bitcoin’s 2021 rally has resulted in a year-to-date gain of over 100%, compared to a 7.1% increase in the Dow Jones Industrial Average
DJIA, + 0.90%,
a 5% increase for the S&P 500 index
SPX, + 0.10%,
and 3.4% increase for the Nasdaq Composite Index
COMP, -0.59%
So far in 2021. Ether tokens have risen 140% over the year to date.

Concerns that inflation will accelerate as the US economy recovers from the COVID-19 pandemic has also fueled the rise in Bitcoin, experts say.

Bitcoin bulls have long pointed to central bank money pressures and concerns about high stock valuations as additional triggers for the surge in digital assets.

With that in mind, some are betting that the next big surge for Bitcoin could be towards $ 100,000.

“When you consider how many asset managers and retail investors fear that the existing financial system will fail, and when a small part of them even invest 5% of their portfolio in Bitcoin, USD 100,000 per Bitcoin is a very conservative estimate,” wrote Sergey Nazarov, co-founder from Chainlink, a blockchain initiative, in a Saturday note.

All in all, the nascent Bitcoin could still fall to $ 0 if governments acted against it, although a number of central banks could experiment with digital currencies and interest waned.

The next development in cryptos for mainstream markets could be the highly anticipated IPO of the digital asset trading platform Coinbase Global Inc.
COIN + 3.70%,
This could prove to be a new catalyst for the broader market.

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