The world’s biggest cryptocurrency, Bitcoin, has surpassed $60,000 on Saturday, 13 March, to reach a new high, according to cryptocurrency data website CoinMarketCap.
It consolidated around $60,000 on 15 March, after Saturday’s record high of $61,781.83.
Bitcoin, which has a market capitalisation of over $1 trillion, saw its value grow about 1,000% in the past year. This is more than 2 percent up from its previous year high of $58,354.14 on Feb. 21.
The surge was also influenced by the renewed energy that financial markets has seen since President Joe Biden signed a $1.9 trillion fiscal stimulus package into law and ordered an acceleration in vaccinations.
Bitcoin had received a huge fillip recently when Tesla Chief Executive Officer Elon Musk announced that his firm bought $1.5 billion of the cryptocurrency. The price and volume of bitcoin saw a massive surge when he announced that Tesla would accept bitcoin from buyers. Consequently, the international bitcoin price shot past $48,000 from below $40,000 in just two days.
Global financial giants have been increasingly showing interest in Bitcoin with payments firms Square and PayPal allowing their users buy and sell the currency. Credit card processing companies such as Visa and Mastercard and various other global financial enterprises including BlackRock and Bank of New York Mellon are engaging with cryptocurrencies.
In February this year, Twitter CEO Jack Dorsey and rapper Shawn Corey Carter, popularly known as Jay-Z, announced plans to set up an endowment to fund bitcoin development initially in India and Africa. Named ₿Trust, Dorsey said the due will offer 500 BTC to a new endowment to fund the development of Bitcoin in India and Africa. It will be a blind irrevocable trust.
“Since mid-February, Bitcoin has witnessed a phase of drops and consolidation and crossed an all-time high of $61K, reflecting a larger trend with Bitcoin’s price rising more than 10-fold over the last year. While the current price rise can be attributed to the increased institutional exposure to bitcoin and global progress in fostering a friendlier legislative environment for cryptocurrencies, it is also the net effect of a large supply reduction coupled with increasing demand.
This orchestrates another leg up in bitcoin price in the coming weeks and bitcoin’s market cap eventually crossing the gold market cap. If we closely-watch the indicators, Bitcoin has the potential to hit $100K by the year’s end,” Monark Modi, founder & CEO, crypto firm Bitex said.