Bitcoin Surpassed $60,000 for the First Time in History
Bitcoin is the world’s largest cryptocurrency in terms of market capitalization, and this fact once more underlines its importance. Last week, more precisely on March 13, its price surpassed $60,000 for the first time ever.
It is worth mentioning that its price has more than tripled in value since the end of last year. Well-known companies started to adopt it as a method of payment. This factor helped to boost the price of the world’s largest cryptocurrency.
According to some analysts, this latest surge came in part due to the huge U.S. stimulus package approved several days ago. It is worth mentioning that Bitcoin’s total market value last month surpassed $1 trillion.
People should keep in mind that Bitcoin has a track record of wild price swings and fell sharply a number of times. As a reminder, this cryptocurrency exists for more than a decade.
Interestingly, Elon Musk revealed that Tesla bought $1.5 billion worth of Bitcoin. He made this announcement in February. Moreover, Tesla plans to accept it as payment for its cars in the future. Furthermore, Mastercard plans to accept certain cryptocurrencies as a form of payment. This is not the end of the story as Black Rock, the world’s largest asset manager, is exploring ways it can use digital currency.
Importantly, the coronavirus pandemic also affected Bitcoin’s price. It is no secret that due to the pandemic, more and more people started to order products online. As a result, they are moving further away from physical coins as well as notes.
Bitcoin and its price
It is worth noting that Bitcoin paired some gains, falling below $60,000 on March 14, a day after reaching a new all-time high. Nevertheless, on-chain data indicates that the uptrend is likely to continue in the near term.
Interestingly, one key metric that is signaling an optimistic short-term trend for Bitcoin is the rise of stablecoin deposits into exchanges. Even though high funding rates and an overcrowded market are causing the price to pull back, the entrance of sidelined capital into the crypto market may further boost Bitcoin’s momentum.
