On Tuesday, Bitcoin soared to an all-time peak of more than $50,000. This is the result of cryptocurrency funding has been announced by major companies such as Tesla, Mastercard, and BNY Mellon. Most people agree that the latest bull market is distinct from the bubble of late 2017.
For the first time in history on Tuesday, the price of Bitcoin broke past $50,000, extending its blistering surge as big corporations seem to be warming to cryptocurrencies.
At around 7:30 a.m., the world’s biggest digital currency by market cap grew more than 3 percent to an all-time peak of $50,487.
Institutional Support for Bitcoin Swelled this Month
Bitcoin has received a boost from reports from major corporations including Tesla and Mastercard demonstrating crypto support.
Last week, Tesla announced that it had acquired bitcoin worth $1.5 billion and expects to adopt the digital currency as payment for its goods, although Mastercard said it would open up several digital currencies to its network.
Significant moves were also made by PayPal and BNY Mellon to endorse crypto. The usage of corporate cash by Tesla to acquire Bitcoin ignited a debate over whether other big corporations will follow suit.
These advances have prompted many investors in cryptocurrency to conclude that the current bull market is distinctive from prior rallies.
In late 2017, Bitcoin skyrocketed to almost $20,000 before losing over 80 percent of its worth the next year.
The record climb of the cryptocurrency comes when several major fund management firms have started to recommend the asset, dragging bitcoin into the financial mainstream further.
A Different Type of Bull Run?
And with the U.S. economy getting ravaged by the coronavirus, stock markets appear to swell.
Last week, the three big U.S. stock indices hit record lows and were trading at those values Tuesday as markets followed reports of the $1.9 trillion assistance plan offered by President Biden and the nationwide vaccine launch.
While several experienced investors and financial firms ignored the prior cryptocurrency rally, the recent growth in bitcoin comes amid rising demand from Wall Street.
Experts remember that at the end of 2017, institutional buyers had rushed to catch a bitcoin slice, which peaked over $20,000, only to see values fall 80% the next year.
Parallels to the latest GameStop trading mayhem, in which many average investors were left with substantial losses after pursuing a headline-grabbing commodity, have been drawn by the astounding rise and fall.