Bitcoin Soars to New Record Highs as Rally Strengthens

Bitcoin Soars to New Record Highs as Rally Strengthens

Bitcoin, the poster child of cryptocurrencies, rose to new all-time highs of a staggering $63,000 per coin on Tuesday. The rally has been gathering steam since late 2020 resulting in Bitcoin hitting new record highs every month. The digital asset, which has soared in value by almost 450% just in the last six months, continued to climb further by 5% during trading on Tuesday before coming back down a little.

The price of Bitcoin has, in fact, more than doubled since the beginning of this year and has been on somewhat of a rollercoaster ride ever since with its value surging to new horizons only to record stomach-churning lows just a few hours later. However, despite the dizzying gyrations, the virtual currency has come a long way since its inception in 2009, when the cryptocurrency was only worth a couple of cents.

But Bitcoin isn’t the only cryptocurrency registering surges in value. Its smaller, rival cryptocurrency, Ethereum has also managed to grow quite a lot over the past year and even rose to its own record high of $2,205 on Tuesday.

These fresh records in the crypto space were recorded just a day before the launch of Coinbase, the largest cryptocurrency exchange in the US, on Wall Street’s tech-heavy NASDAQ stock exchange. The news of Coinbase’s launch is suspected to have caused this drive-in value as it is purely a speculative asset. However, there are other factors at play as well.

The listing of Coinbase on the NASDAQ has been viewed by crypto aficionados as further evidence of growing mainstream acceptance of Bitcoin and other cryptocurrencies among investors as well as financial institutions, especially as a means of payment.

In fact, back in February, Bitcoin flirted with a high of $60,000, the first time it had gone so far up. This Bull Run was supported by the involvement of a number of high-profile corporations and institutions in the digital currency. Among the front runners was Elon Musk, the chief executive of Tesla, who announced that the company had invested in $1.5 billion worth of Bitcoins. Tesla also now accepts Bitcoin as a means of payment from its customers for the purchase of any of its cars. But Musk, who briefly became the world’s richest man, didn’t just stop there and has continued to voice out his support for the cryptocurrency.

Many other major firms and investors, that once dismissed the idea of ever taking up Bitcoin, seem to have changed their tune this time around by declaring their support for Bitcoin and other cryptocurrencies. A number of financial institutions have also jumped aboard the Bitcoin bandwagon, which has helped push the narrative of Bitcoin and virtual currencies among potential investors and spectators. Square, MasterCard, PayPal, and Visa are just some of the big names that have declared their allegiance with cryptocurrencies.

This has been an underlying reason for the constant surges in Bitcoin’s value as more and more people are viewing it as a legitimate form of payment.

Crypto traders also play their part in the price fluctuations of Bitcoin’s value. The crypto space is, no doubt, a highly volatile playground and hence, many potential investors and traders may view their first few steps along the blockchain path to be a daunting experience. However, the availability of auto-trading platforms and tools, such as bitql, have completely transformed the trading game for novice investors. By using advanced technologies and powerful algorithms, these platforms make trading decisions on your behalf to capitalize on short-term crypto booms and provide higher returns. Due to these, several investors have continued to further invest in Bitcoin with hopes of earning big on this volatile crypto beast.

Furthermore, worsening economic conditions as a result of the Covid-19 pandemic have also helped push this digital currency into the limelight since it is often seen as a hedge against inflation. A prime example of this phenomenon is Turkey, where cryptocurrency trading is enjoying a boom as the investors turn towards cryptocurrencies to seek refuge from the country’s economic turmoil and surging inflation.

Bitcoin’s founding code dictates a limit to the number of coins that can be mined, capped at 21 million. Currently, there are roughly about 18.5 million coins that are already in use and as this figure increases and Bitcoins become more scarce, the more valuable each coin becomes, driving its value upwards. Hence, many investors prefer to hold Bitcoin for a longer-term and reap the benefits when the time is right.