Bitcoin hits $50K for the first time in history on Tuesday. The widespread adoption of cryptocurrency by institutions played a major role in pushing the currency to the new heights.
The valentine’s day for crypto lovers came two days late. On Feb 16th, the poster child of cryptocurrency took a flight and hit $50K milestone for the first time in history. This milestone has once again spurred the argument about the future of bitcoin.
Believers of digital currency see the surging as an affirmation of Bitcoin’s place as a store of value in the financial industry. Whereas, the sceptics are still calling it a big bubble. Nonetheless, with institutional support for bitcoin, it does not matter what critics say. BTC is in for a party.
Bitcoin is a volatile asset. Its price moves quickly and is often powered by small changes in investors’ behaviour. For instance, the high tweet volume of BTC often pushes new investors into bitcoin arena. Resultantly, the price quickly spikes.
This time the bitcoin bull run was induced by institutions. On Monday last week, Tesla revealed its 1.5 billion dollar investment in bitcoin. In the following days, Mastercard and BNY Mellon came up with the plans of incorporating crypto in their list of services. The tipping point, however, was MicroStrategy’s announcement of additional investment in bitcoin.
No, it is not like any other kind of ‘bull-run’, this one is different:
Crypto investors believe bitcoin bull this time run is different from the one we witnessed in 2017. Now, with institutional support, BTC is seen as a more stable asset. Moreover, investors are not deterred by price corrections. A case in point is Bitcoin’s fall to $28K on January 28th. Despite the downward trend, top bitcoin addresses kept buying more BTC.
At the time of this writing, Bitcoin is at $50,091. Hence, the bull run is alive and kicking.