- Bitcoin Price struck yet another record high, exceeding $57,000 for the first time
- This further stimulated a wide rally among other cryptocurrencies
- Many are associating the surprising surge in BTC’s price with the enormous demand from investors
The topmost cryptocurrency recently exceeded the value of $50,000. Along its way, the crypto asset accomplished a market cap worth $1 trillion. In the latest news, Bitcoin Price (BTC) on Saturday morning established yet another record high, exceeding $57,000 for the first time. This further stimulated a wide rally among other cryptocurrencies.
Bitcoin Price back and forth stimulated a crypto rally
The value of BTC (+1.07%) struck a high of $57,492.00 before reverting to $57,264.55 in the last 24 hours. Before yesterday’s back and forth began, BTC’s value was static at around $51,600.
BTC concluded at a quiet value of $29,000 in 2020 succeeding a better-than 300% benefit over the last 12 months. Now, that astounding performance appears to be docile as just less than two months into the new year, BTC almost achieved a double value with a 95.4% gain.
Many are associating the surprising surge in BTC’s price with the enormous demand from investors. These investors, thus, perceive the crypto asset to hedge against inflation. This feature is crucially noteworthy in the current context as the governments are keen on spending while the central banks are printing money in an attempt to keep their economies stable through the pandemic.
Potential reasons for the current surge
The chief executive at cryptocurrency exchange Blocktane, John Willock, stated that through the insistent buy-side constraint from exchange-traded fund (ETF) providers, closed-end funds and giant public corporations upgrading their positions with Bitcoin to their positions, the demand is likely to outstrip the supply massively.
Last month, Tesla, the electric-automobile producer announced its big bet on Bitcoin worth $1.5 billion for its treasury. This very declaration ignited the current surge in the value of BTC. It also sparked a series of playing “who’s next?” in terms of the will to venture into the space of BTC next. The consequential hype, thus, helped in diverting the attention of mainstream investors towards the sector overall.
Ethereum’s New High
Moreover, late Friday night, long after the majority of the action in BTC cooled down for the moment, the value of Ethereum achieved a new high of its own, exceeding the $20,000 mark for the first time ever. The enthusiasm over BTC and ETH both striking new peaks is gradually spreading now to the remaining crypto space. Almost all of the tokens were up Saturday morning with many of them accomplishing double-digit percentage profits on their respective values.
The graph of Saturday’s gains can simply be associated with some investors searching for the next BTC or ETH. The other reason could be that supporters of certain tokens are probably telling everyone in their chat rooms that their tokens will be the next ones to escalate.
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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.