On Friday, February 19, as Bitcoin reached a record all-time high of $57,524.99, it had just surpassed a market capitalization of $1 trillion.
Since growing to an all-time peak of $57,000 last week, the cryptocurrency that is most commonly utilized in the world gained another 18% during the past week, taking the value to $57,000 again. The number goes up by almost 70% in the first month of the month, and $57,107.2 was applied to its worth last time this intensity was observed.
The Road to the Bull Run
On February 16, 2017, for the first time in history, Bitcoin crossed the $50,000 threshold. Tesla Inc spent $1.5 billion in Bitcoin, with the company’s billionaire chief Elon Musk at the helm.
The jump in price prices has a noticeable effect on bitcoin’s rising recognition in the capital markets as an investment asset. Bitcoin has recently reached the $50,000 mark for the first time, gaining greater interest from the general public.
Microstrategy also made a significant bet on Bitcoin. To further fund the firm’s purchase of bitcoin, the corporation plans to issue $600 million in convertible bonds. Currently, the price of Bitcoin is just over $50,000, which implies that the value of Bitcoin is usually between $50,000 and $60,000.
The price of rival digital currency Ethereum almost doubled in 2018. CME’s exchange in Ethereum futures prompted the price of ether to increase to an all-time peak of $1,974.99 on Friday, according to Reuters.
It is already valued slightly above market value, according to JP Morgan analysts.
The diversification of investment portfolio reduces the benefits of buying bitcoin when investments rise and decline in parallel with the economy.
Although other investors this week think bitcoin’s volatility keeps it apart from being commonly accepted as a payment mechanism, some say the idea that bitcoin’s price fluctuates in value over time is beneficial to the economy over the long term.
In the bitcoin camp, backers argue that the blockchain is a “digital gold” defense against inflation triggered by the implementation of large-scale stimulus steps by central banks and governments to counteract the impact of COVID-19.
Additionally, the rebound of bitcoin at the height of the coronavirus pandemic was both unforeseen and very encouraging. The digital currency denied the analyst’s fears that it is a ‘fringe-market side display’ and that it acts as a low-risk trading buffer against declining asset prices.
Cryptocurrencies don’t have broad use as a form of payment. It is likely that the names of major organizations and smaller and medium-sized companies that embrace Bitcoin might surprise you.
Bitcoin’s real meaning is defined by the individuals who are using it; these people are an utterly fascinating use case.
With the current institutional purchases of crypto, there might be some preparation to introduce Bitcoin to the masses. Elon Musk, who heads Tesla, claims that Bitcoin has found a critical mass and will eventually become commonly accepted.