Bitcoin hits $51,721.15 as its record rally continues

Bitcoin hit a new all-time high on Wednesday, surging to $51,721.15 in value.

Digital currency Bitcoin, which has a market value of more than $900 billion, has broken the record high on the back of signs that mainstream investors and companies like Tesla, Mastercard, and BNY Mellon are starting to accept it.

On the heels of the virtual currency’s recent surge to the $50,000 mark, analysts have expressed concern about the currency’s long-term viability.

At the time of this writing, Bitcoin was trading at $50,990.6. However, in 2021, some analysts predicted that Bitcoin would not be widely accepted as a form of payment. During the eight-month period ending in September, the market value of Bitcoin has increased by more than $700 billion.

The leap’s’magnitude.’

Approximately 78% of all Bitcoins have either been lost or are being held with no plans to sell them. According to blockchain data provider Glassnode, this leaves less than 4 million Bitcoins for future market participants, including large institutional investors like PayPal, Square, S&P 500 companies, and exchange traded funds.

Just $11 billion in capital from institutions prompted JP Morgan to raise concerns about the “magnitude” of this rally. In a note from JP Morgan, analysts said that the digital currency’s limited supply — based on “miners” producing a set number of new coins — has led to holders charging a premium on Bitcoin coming to market. They speculated that retail flows may have bolstered institutional flows as well.

Even so, the JP Morgan analysts who predicted Bitcoin’s emergence as digital gold in January 2021 said that its prices aren’t sustainable unless its volatile price swings cool down quickly.

The Dutch tulip apocalypse is a real possibility.

As its price volatility is 12 times greater than that of the euro and seven times greater than that of the Russian rouble, Bitcoin is not currently an efficient method for high-volume transactions or a store of value. If you’re looking to invest in something, it’s perfectly legal to do so. Is it doomed to the same end? That’s a bit of a mystery. Harley Bassman, managing partner of Simplify Asset Management, urged investors to “size your risk appropriately” in a statement.

The popularity of Dutch tulips peaked in the 1600s before plummeting in 1637.

Over the past few months, Brian Melville, director of strategy at Cumberland, the crypto arm of Chicago trading firm DRW, said, “We’ve closely monitored the clear supply-demand imbalance.”

A broker in the United States said that less than 5% of publicly traded companies will invest in Bitcoin in the next 12 to 18 months, according to Wedbush.

Twitter’s top officer says the company is considering using Bitcoin for transactions.


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