Bitcoin’s first record of $50,000, influenced by institutional purchases

[Digital Today Reporter Choo Hyun-woo] Virtual asset (cryptocurrency) representative Bitcoin recorded $586 for the first time in history based on the coin market cap on the afternoon of the 16th, crossing the $50,000 resistance line. After the adjustment period, as of 9:30 am on the 17th, it is in the high half of $49,000.

Bitcoin has been on a continuous rise for more than two months since last December. After surpassing $20,000 in mid-December 2020, it has surpassed $30,000 in January this year and $40,000 in February.

In particular, after Tesla’s $1.5 billion investment in bitcoin, major companies have been reviewing virtual asset investments, raising expectations for bitcoin. In recent years, Mastercard has fueled the uptrend by expressing its intention to support payment of virtual assets including Bitcoin.

In addition, the transaction price jumped further as MicroStrategy, a large bitcoin investment company, revealed its plan to create a $600 million private equity fund for additional investment in bitcoin. “I think Bitcoin is a much more stable asset now than it was three years ago,” said Michael Sailor, CEO of MicroStrategy.

In a recent interview, Twitter and Square’s CEO Jack Doshi also expressed their view that “Bitcoin is an attractive store of value.” In fact, Square has started investing in bitcoin, and Twitter is also in the process of reviewing bitcoin investments.

In addition, the booming market continues as institutional investors such as BNY Mellon, Bitwise, Block Pie, and Offsray Trust jump into the bitcoin market one after another.

According to the Bitcoin Exchange Guide, Itoro’s virtual asset analyst Simon Peters predicted that “the inflow of medium and large institutional investors continues to increase. There is ample room for Bitcoin transaction prices to rise to $70,000 within this year.”