Igor Golovniov | LightRocket | Getty Images
Bitcoin continued to rise on Wednesday, above the $ 51,000 level for the first time.
According to Coin Metrics data, the red cryptocurrency hit a new record price of $ 51,715 around 4.50 am ET. It last traded 5% higher, at $ 51,222.
Bitcoin was created in 2009, shortly after the global financial crisis. It has gone from a protest against the banking system to a “digital gold” that is beginning to catch the main investors.
On Wall Street, major investment banks appear to be heating up bitcoins. JPMorgan recently said it is seriously looking at the asset class, while Goldman Sachs has also shown interest in cryptography. Meanwhile, a division of Morgan Stanley would be considering adding bitcoins to its list of possible bets.
Meanwhile, companies like PayPal and Mastercard have made significant moves to support cryptocurrencies. And Tesla said last week that it had invested $ 1.5 billion in bitcoin and planned to accept digital currency as payment for its products.
The latest Bitcoin rally has reminded many investors of its massive rise to nearly $ 20,000 in 2017, which was followed by a sharp drop the following year that saw the digital currency lose 80% of its value.
But since then, the world’s most valuable cryptocurrency has experienced a fierce return, more than quadrupling in 2020 and gaining more than 70% since the beginning of this year.
Proponents of Bitcoin say it is due to increased demand from institutional investors, as well as corporate purchases of Tesla, Square and MicroStrategy digital currency. Skeptics, on the other hand, are concerned that bitcoin is the biggest bubble in the financial markets.
JPMorgan strategists said in a note on Tuesday that unless Bitcoin volatility begins to decline, its current price “seems unsustainable.” Bitcoin and other cryptocurrencies have earned the reputation of their extreme prices.