- On January 1, 2020, bitcoin price was recorded at $7,200 per coin, and by February 16, 2021, the prices have already risen to $50,000
- Some of the prominent names who are supporters of bitcoin are Elon Musk, Tesla CEO, Jack Dorsey, Twitter CEO, Jay Z, Rapper, Entrepreneur, and A Scaramucci, Ex-Trump Associate
Bitcoin price hit a record high crossing over $50,000 mark. The reason for the surge is because of the companies and CEOs endorsing the token in a big way.
Bitcoin in its Tuesday rally has crossed the $50,000 mark gaining an all-time high. The coin marked the record high with a gain of almost 72% starting from the year to date. The token has been showing an upward trend. One of the main reasons is that now the bigwigs are now taking a keen interest in the prospects of Bitcoin.
The boost in the prices was mainly driven by companies like Tesla, JP Morgan, Morgan Stanley who have invested heavily in bitcoin and that they are set to accept payments in bitcoin. Recently, Tesla Inc. has invested $1.5billion in Bitcoin and announced its intention to accept payments in bitcoin. The company has shown a great deal of interest in the coin, which led the rally to $50,547.
While Tesla was the only company latest in a large investment that has fueled bitcoin to come out of the fringes of finance to company balance sheets and wall street dealing desk. The traditional money investors to have started to purchase bitcoin in large numbers.
Driving Force Behind Bitcoin Price Surge
There are certainly other factors that hold responsible to steep the prices of bitcoin. One such factor driving the surge in the prices is the post covid rally. This has been led by the institutional investors’ interest in buying and accepting payments in bitcoin. The investors see it as a store of value and hedge against inflation.
On January 1, 2020, the price of the bitcoin was recorded at $72,00 per coin, which by Feb to date has risen to $50,000. This is a whopping 603% increase in the prices comes amid a backdrop of near-zero borrowing rates from central banks, unprecedented stimulus from governments due to Covid-19 and the demand of millennials for a currency sans borders and controls.
Also, some of the biggest organizations increasing interest in bitcoin led to the surging of prices. They are Tesla, BlackRock, MasterCard, Morgan Stanley and Apple.
But how one bitcoin be measured is the question? Well, one bitcoin can buy you 375gm of gold worth Rs.36.7 lakh. Also, one can buy the shares of MRF stocks with 41 bitcoins. The price per share of the MRF stock is Rs.88k per share. It is the costliest share in India.
RIL and TCS are one of the most prominent t companies in India. They stand at 18% and 16% of bitcoin’s aggregate value currently. The market cap of bitcoin is one-third of India’s market cap which is $3,000. India has been restricting cryptocurrency in the country for quite a long time now due to its volatile nature and no regulations issues. But now the country is all set to launch its digital currency very soon, which the govt feels to be very promising for the Millenials.
The future of bitcoin seems to be very bright in the crypto market. Certain rogue elements are looking to seize on crypto, but the benefits far outweigh the misuse. Tesla’s investment created a lot of interest in the market and shows that the coin is here to stay. Other triggers are the launch of bitcoin ETFs and ATMs.
Many have always backed bitcoin even when it did not show any signs of improvements. Some of the prominent names are Elon Musk, Tesla CEO, Jack Dorsey, Twitter CEO, Jay Z, Rapper, Entrepreneur, and A Scaramucci, Ex-Trump Associate.
Elon Musk who has been in the news for his inclination towards dogecoin is also a great supporter of bitcoin. He believes that bitcoin will get broad acceptance in finance. He has added #bitcoin to his Twitter bio last, showing his support towards the token. This has also helped push the digital currency’s price up by as much as 20%.
Jack Dorsey, the Twitter CEO is the big supporter of Bitcoin and that has been evident from his posts on his account. To fund bitcoin development, Dorsey invested 500 bitcoins (approximately $23 million) in a trust names B Trust. He had invested it initially in India and Africa. He did this funding along with the rapper Jay Z. He further mentioned in his account that it will be set up as a blind irrevocable trust, taking zero direction. Three board members are required to start the trust.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?