The representation of the virtual currency Bitcoin can be seen on a motherboard in this illustration from April 24, 2020.
Given Ruvic | Reuters
Bitcoin hit a record high of $ 60,000 on Saturday morning and continued its rally as large corporations and financial institutions launched cryptocurrencies.
Bitcoin, the world’s largest cryptocurrency, stood at $ 60,415.34 as of 7:25 a.m. ET, according to Coinbase, rebounding from a decline in late February that followed an earlier record high this month.
The digital currency is up 963% in the past 12 months. Its value exceeded $ 1 trillion last week for the second time this year.
Bitcoin’s rally is due in part to increased adoption by larger institutional investors and corporations, as well as speculative demand. Tesla has purchased $ 1.5 billion worth of Bitcoin and plans to accept the digital coin as a means of payment for its products. This decision aroused greater interest.
Mastercard also said it will open its network to some digital currencies. And PayPal and BNY Mellon have taken some steps into space.
Bitcoin believers argue that the current rally is driven by institutional investor demand and is different from previous rallies, such as when Bitcoin rose to nearly $ 20,000 in late 2017 before losing about 80% of its value the next year.
Others argue that Bitcoin and other cryptocurrencies have no intrinsic value, and fear that Bitcoin could be one of the largest stimulating market bubbles ever recorded.