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- Bitcoin price successfully smashed past $50,000 on Tuesday
- The cryptocurrency then surged higher, exceeding $52,000 on Wednesday
- These surges triggered refreshing fears of a speculative bubble which the market witnessed around four years back
Bitcoin price is enjoying a record-smashing week. This happened after Tesla and Wall Street finance institutions stimulated a heavy rush rally for the world’s leading digital currency. However, the bubble fear still sustains.
The dizzying growth and the enhanced opportunity for benefits and asset assortment are various factors that enchant the investors and giant-corporations alike.
Bitcoin Price’s record-breaking surges
The crypto asset smashed past $50,000 on Tuesday. This happened following a week in which Tesla made a significant bet of $1.5 billion in Bitcoin. Moreover, it offered a possibility that the customers will soon be able to use it to purchase vehicles. Besides, both BNY Mellon bank and credit card giant MasterCard declared distinctive plans to support Bitcoin.
The cryptocurrency then surged higher, exceeding $52,000 on Wednesday. Besides, the mega-institution BlackRock also verified a knock into the booming industry. However, this week’s surprising dominance of Bitcoin triggered refreshing fears of a heavy bubble which the market witnessed around four years back.
Meanwhile, the US software institution MicroStrategy declared programs on Wednesday, to trade convertible bonds for purchasing more bitcoin. This respective episode raised quite a few eyebrows in some sectors.
The speculative bubble of 2017
OANDA analyst, Craig Erlam suggested a warning, as to how it feels like the world is back in 2017, when everyone was washing to bank on the crypto wave. If companies’ foundations are going to become closely associated with the movements in Bitcoin, the industry is likely to enter the bubble territory unconsciously.
The crypto asset had previously struck the headlines in 2017. Back then, it soared from a value less than $1,000 in January to around $20,000 at the end of the same year. However, in October 2018, the digital bubble exploded as Bitcoin’s value fluctuated heavily before plunging below $5,000.
Matthieu Bouvard, a professor at the Toulouse School of Economics, asserts that Bitcoin is a unit that is heavily volatile and involves extensive risks. He added that despite these profitable characteristics, people are constantly predicting its collapse. However, the asset is still ruling strong. He added that the asset’s volatility is likely to plunge as its popularity strengthens.
Industry officials suggest that Bitcoin is a unique and path-breaking financial asset of the future. The chief executive of cryptocurrency exchange Bitpanda, Eric Demut, defines Bitcoin as a form of digital gold. According to him, the investors who wish to variegate their assets and protect them against inflation use the respective crypto asset.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
