Bitcoin Surges Past $51,000 in Yet Another Record High
Only a day after reaching the vaunted $50,000 mark, the world’s leading cryptocurrency surged to new milestones.
The price of Bitcoin continued to climb on Wednesday, setting further records as it gains greater acceptance among mainstream investors and companies.
Bitcoin’s value reached as high as $51,140 before sinking back down to $50,828.83 in early Wednesday trading in London, extending a bull run for the currency that began in October last year.
Only a day earlier, Bitcoin raced past the $50,000 milestone on several stock exchanges, earning renewed attention from investors who witnessed the coin’s jump to $48,000 less than a week prior.
Bitcoin has been on a steady rise since 2020 as stock market turbulence drove investors to seek out new havens. Late in the year it received a crucial boost towards the payments mainstream after PayPal announced that it would accept the currency as a payment method on its platform. February 2021 also saw Elon Musk’s Tesla invest an unprecedented $1.5 billion in Bitcoin, a show of confidence that triggered the coin’s most recent price surge.
This rise has also lifted other cryptocurrencies, with rival token Ethereum reaching all-time highs of its own.
However, investment gurus have cautioned that Bitcoin’s rally may be short-lived. JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a memo on Tuesday that the price surge “looks unsustainable” given current volatility.
“Movements since January this year appear to have been more influenced by speculative flows,” the analysts said.
Whether or not Bitcoin’s price drops down again, it is unlikely that cryptocurrencies’ march towards the mainstream will be reversed. Earlier this month, BNY Mellon also stated that it will begin to hold, transfer and issue Bitcoin and other virtual currencies for its clients, furthering the tokens’ adoption in the financial services sector.