Bitcoin always makes headlines, and this time it’s big. Bitcoin has made a high record on Friday and exceeded $1 trillion in market capitalization, while European and US equities also got a higher push.
Last year in December, bitcoin’s value witnessed a surge of more than 6 percent to $20 676, an all-time high registered in three years.
Earlier, in 2017, a peak in Bitcoin was seen after frenzied purchasing by retail investors from Japan to the United States. It witnessed the cryptocurrency increase of over 250 percent in just 35 days before dropping 70 percent of its value in less than two months after its December 2017 high.
One trillion-dollar market cap is significant because not many believed that bitcoin could achieve this. Now, we have a real number which is massive in size, and we are going to get more investors joining this rally,” said AvaTrade analyst Naeem Aslam.
The payment integration and store of value are the factors which are driving the price higher, and as long as this support remains in place, we are likely to have even more prominent headlines,” added Aslam.
Investors and Wall Street finance giants have been surprised by dizzying growth, the opportunity for profit and asset diversification, and a safe store of value to guard against inflation.
“The cryptocurrency also vaulted higher after New York bank BNY Mellon and credit card titan MasterCard announced plans last week to support bitcoin.
A further lift after investment fund giant BlackRock also reinforced a push into the booming sector.
And US software firm MicroStrategy declared plans to sell convertible bonds to buy more bitcoin.
Since March last year, the virtual unit has been on a swift rise, when it stood at US$5,000, driven by online payments giant PayPal saying it would enable account holders to utilize cryptocurrency.
Once seen as the preserve of internet geeks and hobbyists, bitcoin has now risen by around 90 percent in value so far this year, despite increasing regulatory concerns and analyst fears of a speculative bubble.
Elon Musk, the founder of electric carmaker Tesla, on Friday, tried to keep his company’s investment – and compared bitcoin with some traditional fiat currencies.
“When fiat currency has a negative real interest, only a fool won’t look elsewhere,” he tweeted about his company’s progress into bitcoin.
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