Bitcoin Climbs Over $1tn in Value, Nears All-Time High
09 Mar 2021 · 3rd Party Analysis
- Bitcoin nears its record price of $58,000
- PayPal announced an acquisition of a crypto startup company
Bitcoin’s market capitalization is once again over $1 trillion as market participants appear optimistic to try and bring it back near the all-time high reached in late February. The price for a single bitcoin is now above $54,000 as the largest cryptocurrency is up nearly 6% on the day. Tuesday marks the second time bitcoin’s price has climbed above the $1-trillion mark. On Feb 19, bitcoin spiked above $54,000 per coin, or $1 trillion in value, for the first time in history.
Bitcoin has once again been on a tear as the apex digital asset is up 26% from its latest low near $43,000 on Feb 28. For the previous seven trailing days, bitcoin is higher by 10%, as Tuesday marks a third straight session of gains. The price is now approaching the historical top reached on Feb 21, when bitcoin climbed to a record high, breaking above $58,000. Even though the rally has cooled off a bit, the digital coin is up over 80% year-to-date and is nearly six times higher over the last 12 months.
For the last few months, the cryptocurrency space has enjoyed strong support from financial institutions and large companies. Several important milestones were achieved recently that are responsible for the breakneck crypto market rally. Tesla, Square, and Microstrategy are some of the most notable companies that have purchased the asset. PayPal, having confirmed that it will accept bitcoin as a funding source on its platform, said on Monday it will acquire a cryptocurrency security firm called Curv. The company, a startup based in Israel, offers secure crypto storage in a cloud-based environment. More support this year is coming from a number of large-scale hedge funds that have announced they have or are interested to purchase bitcoin and other cryptocurrencies. Investment banks such as Goldman Sachs and JPMorgan expressed willingness to offer bitcoin to their clients as soon as this year.
The Cryptocurrency Market: A Renewed Wave of Optimism
Supporters of the crypto space remain very positive for its outlook. They often call on the “safe-haven” characteristics of bitcoin and label it as a hedge against inflation or a place where investors can put their money during political or economic crises. Skeptics criticize the digital currency market for its wild swings, high volatility, lack of regulatory policies, and the tendency for bubbles to form as a result of speculation and price manipulation.
However, some argue that the loose monetary policy that offers low-interest rates could further propel more interest in the cryptocurrency market as a growing asset class on its own.
As bitcoin is back near its highs, so is another popular cryptocurrency. On Tuesday, Ethereum, the second-largest coin, climbed to an intraday high near $1,900. The price has subsided now and is gravitating towards the $1,800 mark. Ethereum made a historical top on Feb 20, breaking above $2,000, but shortly after slipped more than 36% to a low of $1,300. In another highly volatile and short-term swing, the price has recovered by 45% in 9 days to trade at current levels.