The world’s largest digital currency by market value rose more than 3% to an all-time high of $50,487 at about 7:30 a.m. ET, according to data from Coin Metrics. It later fell below the mark, trading 0.2% higher at a price of $48,760.Just two weeks ago on February 8, it achieved a now-previous historic high of $40,000.
Further support for Crypto
This second rise is partially attributed to support from Elon Musk through significant investment from Tesla Inc. Telsa had bought $1.5 billion of and announced plans to accept the digital coin as payment for its products. Meanhile,other major companies are also reported to be taking an interest.
Mastercard had announced plans to open its network to use of some digital currencies. Companies such as PayPal and BNY Mellon have also made significant moves to support the trend of cryptocurrency.
In terms of these companies’s revenue from cryptocurrency, mainly Bitcoin, the exact value is not disclosed. However, Tesla is known to have made its purchase in January when bitcoin prices traded between $29,333 and $37,020.
Despite recent trends, skeptics see bitcoin as a speculative asset and worry it may be one of the biggest market bubbles in history. Economists such as Nouriel Roubini have stated that bitcoin and other cryptocurrencies have no intrinsic value. A renowned Deutsche Bank survey has issued that investors view bitcoin as one of, if not then the most extreme bubble in financial markets.
With all that said, the general consensus / predictions for the rise of bitcoin was not completely unprecedented either. Just several months ago in December 2020, Bloomberg analysts has already forecasted Bitcoin to raise above $50,000. The prediction was already proven true.
“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand [versus] supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap,”Bloomberg Analyst
As it is, brave calls have been made, even projecting the cryptocurrency to rise above $100,000 by the end of 2021. As more companies begins to warm and open up to the idea of accepting cryptocurrency a a payment method, the trend of cryptocurrency will continue to grow on the market. Compared to its previous slighted image in the early parts of the last decade, cryptocurrency has certainly gained a significant edge and impression over many parts of the world, especially in wealthy developed countries.