Increased interest from prominent investors in cryptocurrency
Although cryptocurrency has been in existence for nearly five years, it remains a complex concept for many. Critics of major cryptocurrencies like Bitcoin argue that it is purely a speculative asset lacking intrinsic value, and any surges in its value are merely indicative of investment bubbles. Nevertheless, there are proponents who hold a different view and have the financial clout to propel Bitcoin to unprecedented levels.
Today, during trading sessions, Bitcoin experienced a 3% surge, reaching $50,487, surpassing the $50,000 mark for the first time since its inception. The uptick was temporary, dipping by 0.6% to $48,952 shortly after. Despite the slight drop, achieving this milestone is seen as a positive sign by investors. The bulk of this upward momentum stemmed from large corporations such as Tesla and Mastercard announcing significant Bitcoin acquisitions and endorsing its adoption as a mainstream currency. Following Tesla’s recent purchase of $1.5 billion in Bitcoin, other companies are now contemplating similar moves, utilizing company funds to bolster the cryptocurrency.
We did it! #bitcoin broke 50K! An enormous and historical step towards the moon! https://t.co/fkVkEyyVq9
— Cameron Winklevoss (@cameron) February 16, 2021
“I think bitcoin is a much more stable asset class today than it was three years ago,” stated Michael Saylor, CEO of MicroStrategy, an enterprise software firm, in an interview with CNBC. “Previously, it was predominantly influenced by leveraged retail traders in international markets engaging in high levels of leverage.”
Last year, MicroStrategy was among the pioneering organizations to utilize corporate funds to invest in Bitcoin.
“From March 2020, institutions began to show interest, and I expect this trend to continue into 2021,” Saylor remarked. “While some advocate for bitcoin as a medium of exchange, I personally see its primary appeal as a store of value.”
