Bitcoin hits new high of above $52,600 before paring gains – as the currency’s market value nears $1 trillion – Business Insider

admin


GettyImages 1228693799
Bitcoin’s total market capitalization is approaching $1 trillion.

The price of bitcoin held above $51,000 on Thursday morning after touching a record high of over $52,600 on Wednesday.

Bitcoin’s meteoric rise from under $4,000 as recently as March 2020 means the world’s biggest cryptocurrency is a whisker away from a market capitalization of $1 trillion.

The bitcoin price (BTC) had fallen marginally to $51,527 on the Coinbase exchange over the 24 hours to 7.20am ET on Thursday. That took year-to-date gains to around 75%.

Analysts say the huge amounts of cash that governments and central banks have pumped into economies during the coronavirus crisis has been a key factor in the rally.

Bitcoin advocates also say the cryptocurrency can act as a store of value if the record amounts of stimulus drive up inflation and erode the purchasing power of fiat currencies like the dollar.

Yet the latest jump in the bitcoin price was triggered by Elon Musk’s Tesla, which revealed earlier this month that it bought $1.5 billion of the token in January. BlackRock, BNY Mellon, and Mastercard have also warmed to cryptocurrencies.

Nicholas Pelecanos, head of trading at blockchain company NEM, said: “There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that Microstrategy started and Tesla
Source…