Bitcoin spirals above $50,000 setting a new record
LONDON (UK) – Bitcoin surged above $50,000 on Tuesday setting a new record, adding momentum to a rally fuelled by signs that the biggest cryptocurrency of the world is gaining acceptance among mainstream investors.
The cryptocurrency reached a new high of $50,602, and was last up 5% at $50,300. So far, it has surged 72% this year and most of the gains came after Tesla said it had purchased $1.5 billion in bitcoin, adding that it would accept payments in it.
The firm is the latest in a series of large investments that have spurred bitcoin from the fringes of finance to balance sheets and Wall Street dealing desks. US companies and conventional money managers have begun to buy a lot of bitcoins.
“The recent market conditions and events both in the crypto space and the financial world at large put such a price movement within the realm of possibility,” said Jacob Skaaning of crypto hedge fund ARK36.
“However, I’d like to offer a word of caution: while my long-term outlook is bullish, massive price fluctuations along the way are only to be expected. Bitcoin is still extremely volatile.”