Bitcoin topped $ 60,000 for the first time when last year’s impulse-fueled rally caused investors to ignore signs of speculative passion.
The original cryptocurrency was trading at $ 61,080 as of 5:35 p.m. New York time and rebounded from a router in late February after setting an earlier high this month. It benefits from optimism in financial markets after President Joe Biden signed the $ 1.9 trillion Pandemic Act.
After ending last year with a 170% increase in the fourth quarter to around $ 29,000, Bitcoin rose to $ 40,000 seven days later. It only took a little over a month to cross the final threshold. Bitcoin traded for pennies for several years after its debut more than a decade ago.
“Bitcoin’s resilience is proving to be legendary,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.
Bitcoin is up about 1,000% over the past year, due to signs of increasing institutional interest as well as speculative demand. Advocates advocate cryptocurrency as a store of value similar to gold that can serve as a hedge against inflation and a weaker dollar. Others argue that the rally is a huge, momentum-powered bubble that is on the right track to burst as it did in the 2017-2018 boom-and-bust cycle.
Industry participants and some strategists point to a broader view as a reason why the current bull run is different.
Examples include Tesla Inc.’s $ 1.5 billion investment in Bitcoin and Elon Musk’s endorsement of digital assets on social media by the chief executive officer. Billionaire Mike Novogratz, of Galaxy Digital Holdings Ltd. said Bitcoin could hit $ 100,000 by the end of the year.
“Stimulus checks, Elon Musk’s relentless support, short sellers throwing in the towel, and weekend liquidity were exactly what it took to get Bitcoin above the $ 60,000 level,” said Ed Moya, senior market analyst at Oanda Corp. to be an unstoppable force and nobody wants to stand in the way of this momentum trade. “
Subscribe to something As good as new newsletter
* * Please enter a valid email address
* * Thank you for subscribing to our newsletter.