Bitcoin has already risen more than 120% this year alone
Bitcoin, the world’s largest and best-known virtual cryptocurrency, rose 6.64% to $ 61,800 for the first time on Saturday, adding more than $ 4,600 to the previous close.
Continuing its record run, Bitcoin rose another 120 from the year low of $ 27,734 on January 4. After ending last year with a 170% rise in the fourth quarter, to around $ 29,000, Bitcoin jumped to $ 40,000 seven days later. It took just over a month to break the most recent limit.
“Bitcoin’s resilience is proving to be legendary,” said Antoni Trenchev, managing partner and co-founder of Nexo in London.
“Each correction is an opportunity to redefine and restart the upward movement.”
Bitcoin rose about 1,000% last year amid signs of growing institutional interest and also speculative demand. Supporters defend cryptocurrency as a reserve of a value similar to gold, which can act as a hedge against inflation and a weaker dollar. Others argue that the bullish is a giant bubble fueled by stimuli on the way to burst as it did in the 2017-2018 boom and bust cycle.
Industry participants and some strategists point to wider acceptance as one of the reasons why the current bull run is different.
Examples include Tesla’s $ 1.5 billion investment in Bitcoin and CEO Elon Musk’s endorsement of digital assets on social media. Billionaire investor Mike Novogratz, who runs Galaxy Digital Holdings, said Bitcoin could reach $ 100,000 by the end of the year.
“Stimulus checks, Elon Musk’s relentless support, short sellers throwing in the towel and weekend liquidity were all that was needed to send Bitcoin above the $ 60,000 level,” said Ed Moya, an analyst at senior market of Oanda Corp