Bitcoin prices on Sunday were approaching a psychological milestone of around $ 50,000. The weekend’s move took the world’s No. 1 digital asset to a new high of $ 49,716.44, according to CoinDesk, adding to a steady grind towards all-time highs as increased attention and more institutional investments in crypto have delivered. a happy short-term backdrop. for the virtual market.
Bitcoin’s BTCUSD, a + 5.27% higher momentum has led it to an annual gain of more than 64%, compared to a 2.8% increase for the Dow Jones Industrial Average DJIA, + 0.09%, a 4.8 advance. % for the S&P 500 SPX, + 0.47% and getting a 9.4% rally for the Nasdaq COMP Composite Index, + 0.50% so far in 2021. Although there is no specific news to help extend the gains for bitcoins, the rally occurs when the asset seems to be gaining strength and greater attention among the traditional investment community. Over the weekend, Bloomberg News, citing well-known people, reported that an investment management unit of Morgan Stanley MS, + 1.21%, Counterpoint Global, was exploring the purchase of cryptocurrencies for its investors. That report comes after The Wall Street Journal earlier last week said that Bank of New York Mellon, BK would hold, transfer, and issue bitcoin and other cryptocurrencies on behalf of its clients. “Digital assets are becoming part of the mainstream,” Roman Regelman, BNY Mellon’s executive director of digital business and asset services, told WSJ. On top of that, last Wednesday, Mastercard MA, -0.55% said it would support certain cryptocurrencies on its network later this year and Tesla Inc. TSLA, + 0.55% said it bought $ 1.5 billion worth of bitcoin and would eventually allow customers use cryptocurrency to buy your products. Read: Why did Tesla buy bitcoins? See also: Why is dogecoin falling? The cryptocurrency has plunged 20% from its Monday high, PayPal Holdings Inc. PYPL, + 4.68% in November opened its cryptocurrency platform to all US customers after making a tighter rollout. Several high-profile Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, have also embraced Bitcoin. Famed investor Bill Miller, founder of Miller Value Partners, in a letter to clients recently reaffirmed his bullish outlook on bitcoin. Certainly, recent developments do not guarantee an uninterrupted rise higher for bitcoins and other cryptocurrencies. At the end of 2017, the price of bitcoin, close to $ 20,000, staged an epic crash, falling to a nadir around $ 3,000 before recovering years later. Optimistic investors also note that additional earnings for the asset may depend on the help of regulators to establish clear protections for investors and rules for the use of cryptocurrencies, which are sometimes seen as a tool for scammers rather than a means. exchange and a store of value. like gold GC00, -0.11%.