The price of the cryptocurrency bitcoin for the first time in history broke the $ 50,601 mark. Quoting from CNBC, Wednesday (17/2/2021), this is because many large companies have started to enter into these crypto assets.
The market valuation of bitcoin also grew more than 3 percent in trading on Tuesday (16/2/2021). After the price of the world’s largest cryptocurrency broke 50,487 US dollars.
Big Companies Make Bitcoin Rally Rise
The price of bitcoin is getting a boost from big companies like Tesla and Mastercard, who are showing their support for this digital currency.
Last week, Tesla stated that it had bought bitcoin worth 1.5 billion US dollars and plans to use cryptocurrency as a means of payment for their product transactions.
Meanwhile, Mastercard said it would open some of their networks for digital currency. Paypal and BNY Mellon have also made some major strides to support cryptocurrencies.
Tesla’s use of company funds to buy bitcoin has led to various speculations about other companies that will also take similar steps.
Uber CEO Dara Khosrowshahi said the company had discussed the matter but the proposal was immediately dropped. On the other hand, the company is considering using cryptocurrency for payments.
Will Bitcoin Drop Like The Year Previously?
Various developments that have occurred lately have made crypto currency investors believe that the rally that has taken place is different from in previous years.
In 2017, bitcoin rocketed close to $ 20,000 before finally dropping more than 80 percent the following year.
Bitcoin investors said the bubble that occurred in 2017 was caused by retail investor speculation. While now, bitcoin prices tend to be driven by institutional investor demand.
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