Bitcoin’s price has cracked another important mark. With up to $ 50,700 on individual exchanges, the world’s most popular cryptocurrency hit a new record.
Driven by reports that Tesla has invested $ 1.5 billion in Bitcoin and that, in addition to PayPal and Visa, Mastercard are now jumping on the crypto bandwagon, the price has already been just below the $ 50,000 mark in the past few days.
Psychologically important brand
After the price of Bitcoin has more than doubled since Christmas and quintupled since late summer, it can be assumed that the psychologically great hurdle of $ 50,000 cannot be easily jumped sustainably. Many investors and small investors will use the brand to exchange at least part of their investments for cash or other cryptocurrencies.
In fact, the price fell almost immediately after reaching its all-time high and is currently just over $ 49,000. In addition to Bitcoin, the entire crypto market is in a steep upward trend. In the past month alone, some of the largest altcoins such as Cardano, XRP and Binance Coin reported price increases of 100 to 200 percent.
Even if a sharp downward price correction could be pending in the coming days and weeks, the outlook for Bitcoin and Co remains positive. Because recently there have been reports that the classic financial industry, including established banks, also want to invest in Bitcoin or have already done so long ago.
The price increase is also fueled by the loose monetary policy of the US central banks, which are pumping enormous sums of cash into the market. Since this depresses the dollar and also increases the fear of inflation, many investors and companies are consequently switching to stocks and cryptocurrencies.