Bitcoin sets a record before the historic Coinbase listing
Bitcoin hit a record $ 62,741 on 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.
The total cryptocurrency market cap reached an all-time high of $ 2 trillion earlier this month, according to data tracking data and markets CoinGecko and Blockfolio.
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 of 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 throughout the year," he added.
The multifaceted rally in cryptocurrencies is also driven by investors seeking to acquire 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.