Bitcoin continues to peak to new height and setting new records despite the ravaging coronavirus pandemic, which has crippled crucial parts of the tech industry across the world.
The largest cryptocurrency exchange in the United States went public on the Nasdaq on Wednesday and is considered a milestone victory for cryptocurrency advocates.
The cryptocurrency rose as much as 5% on Tuesday. Smaller rival Ethereum also reached a record high of $2,205.
As the call for cryptocurrency mainstreaming rises, companies like BNY Mellon, Mastercard Inc and Tesla Inc are companies that accept or invest in cryptocurrencies.
At the beginning of last month, driven by Tesla’s purchase of $1.5 billion in digital assets for its balance sheet, Bitcoin broke through $60,000. In the past two weeks, its trading range has been very small.
Digital Asset Manager CoinShares, James Butterfill said; “When bitcoin markets create new highs the price often range-trades and we witness a round of profit-taking
“During this most recent period have witnessed a similar profit-taking round, which now looks to have run its course.”
Investors seeking high-yield assets at low interest rates have also promoted the diversified growth of cryptocurrencies. However, Bitcoin, which traded at a few hundred dollars only five years ago, has soared, which has caused major investment banks to warn of a speculative bubble.
Several fund managers surveyed by Bank of America and Deutsche Bank stated that Bitcoin is in a “bubble” field, and has warned that it could fall sharply without notice.
Graphic: Cryptocurrencies surge multi-fold from March lows