Bitcoin (BTC) broke a new record on Tuesday — reaching $50,487 for the first time in history. The largest digital currency rejected the $50k for more than a week but finally soared 3% after major financial institutions showcased their interest in BTC. It later fell below the new all-time high record to reach $48,952.
BTC, the largest digital currency by both price and market capitalization owes its price surge to Tesla, MasterCard, and Bank of New York. Last week, Tesla announced it had bought over $1.5 billion worth of Bitcoin. Meanwhile, the Bank of New York and MasterCard said they will accept the digital currency. MasterCard added that it will open up its network to several digital currencies, months after PayPal allowed U.S. users to trade in Bitcoin.
Following the news about growing interest from both giant companies and financial institutions, the virtual token saw an immense increase. Although BTC suffered a severe correction in late January, the digital token recovered to breaking three consecutive price records in 2 weeks period.
More companies are now considering Bitcoin
The growing interest from major players like Tesla has had other companies considering Bitcoin. For instance, Uber CEO Dara Khosrowshashi said in an interview with CNBC last week that his company discussed buying Bitcoin. However, they “quickly dismissed” the investment, and may consider accepting it as payment in the future.
On the other hand, Morgan Stanley is said to invest a breath-taking $150 billion in Bitcoin. The financial company is exploring with its unit Counterpoint Global whether the cryptocurrency would be a suitable option for its investors.”
MicroStrategy — American enterprise software firm announced a $600 million debt offering. The company said that they will use it to buy more Bitcoin. Meanwhile, the company’s CEO Michael Saylor said that the digital token is becoming more stable.
In an interview with CNBC, CEO Michael Saylor said: “I think bitcoin is a much more stable asset class today than it was three years ago. It used to be dominated by leveraged retail traders … on international markets with a lot of leverage.”
“I think that starting in March of 2020, you saw institutions start to arrive. And I think in 2021 you’re going to see that trend continue. There’re enthusiasts for bitcoin as a medium of exchange. But I personally believe that the compelling use case is a store of value.” Saylor added.