Bitcoin hit a record $ 62,741 today, Tuesday, continuing its rise in 2021 to new heights the day before Coinbase was listed on the Nasdaq Stock Exchange.
The listing of the largest US cryptocurrency platform on the Nasdaq on Wednesday is a historic victory for cryptocurrency advocates.
Bitcoin is the largest cryptocurrency in the world, and continues to rise in light of its increasing acceptance as an investment and means of payment, as the currency rose by up to 5 percent on Tuesday.
There are several major companies, including BNY Mellon, MasterCard and Tesla, that have embraced or invested in cryptocurrencies.
Bitcoin surpassed $ 60,000 early last month, spurred by Tesla’s move to buy $ 1.5 billion in digital currency for its balance sheet.
James Butterfill, an investment strategist at digital asset management firm CoinShares, said: When Bitcoin breaks a new peak and hits new highs, the price often trades in a specific range and we see a round of profit taking.
He added: During this recent period, we witnessed a similar round of profit taking, which now appears to have come to an end.
Simon Peters, an analyst at the eToro investment platform, said: “Demand is flooding the market from institutions just as large amounts of Bitcoin and Ethereum are increasingly taken off the Internet and their owners transfer them to their own wallets.
“There is only one consequence of that, as investors should expect higher and lower levels,” he added Throughout the year.
The multifaceted rally in cryptocurrencies is also driven by investors seeking high-yielding assets at low interest rates.
However, the spike in Bitcoin, which was trading for a few hundred dollars just five years ago, prompted major investment banks to warn of a speculative bubble.
Several fund managers surveyed from BofA and Deutsche Bank said Bitcoin was in bubble territory and expected to fall sharply.