Bitcoin resumed hitting record highs, having broken through $50,000 last week. On February 21, the largest cryptocurrency in the world reached another peak. The currency is reaching over $58,000 as it continues its strong momentum in 2021.
Since the start of the year, the digital currency has boosted by more than 90%, pushing its total market value over $1 trillion.
Bitcoin is quite volatile and has declined the number of times since it was created in 2009.
According to figures from CoinDesk, a cryptocurrency news site, the dominant cryptocurrency stood at $28,900 at the beginning of 2021.
When Bitcoin hit $40,000 in early January, it triggered a downward trend and witnessed it declined to about $30,000 by the end of the first month of the year.
But, since it reached $50,000 on February 16, it resumed its upward momentum and touched $58,000 on February 21.
Bitcoin rally has mainly been by Tesla and Mastercard
As we already mentioned, the Bitcoin rally has mainly been fueled by famous companies accepting it as payment.
The billionaire Elon Musk announced last week that his company Tesla had invested $1.5 billion in Bitcoin and would be adopting it as a form of payment for its cart in the future.
Moreover, Mastercard also revealed its plan to accept Bitcoin as a method of payment. Whereas BlackRock, the world’s biggest asset manager, is searching for ways it can use digital currency.
It’s essential to mention that the coronavirus pandemic has also played a big role in Bitcoin’s price boost. More people are going online for shopping, moving further away from physical coins and notes.
Famous economist and bitcoin critic Nouriel Roubini has announced Bitcoin has very little practical use and doesn’t provide a steady income like a bond or a share.
According to the founder of cryptocurrency rating platform Evai, Matt Dixon, investors still need to be aware of related risks.