The world’s largest digital currency, BTC, has hit a record high and its price on the Kraken exchange has exceeded USD 57,000.
Image from TradingView
Reasons for the Bitcoin bull market
One obvious reason is US business intelligence firm MicroStrategy, which yesterday announced it would sell $1 billion in debt to buy more bitcoins. MicroStrategy did something like this before, selling $400 million worth of convertible senior notes in December, adding funds to purchase billions of tokens.
MicroStrategy is a technology company led by CEO Michael Saylor who has gone from being a crypto critic to a missionary. Industry leaders speaking to Decrypt praised its impact on Tesla’s $1.5 billion purchase of Bitcoin, a move that later drove prices higher.
As cryptocurrencies have benefited from the recent wave of “mainstreaming”, cryptocurrencies have hit record highs.
Last week, BNY Mellon announced it would invest in cryptocurrency for its clients. Industry leaders told Decrypt last week that this move will change wealth managers’ perceptions of Bitcoin and drive the price higher to long-term price predictions from JPMorgan Chase, Guggenheim, and others.
Scott Minerd, CIO of Guggenheim, stated that the long-term price of Bitcoin could reach $600,000, and JPMorgan predicts that the long-term price of Bitcoin could reach $146,000.
The continued price hike over the past few months has pushed the market value of Bitcoin to over $1 trillion. In cryptocurrency, market capitalization refers to the total number of coins in circulation multiplied by the current market price of each coin. As Decrypt reported, the total market value of the entire cryptocurrency market hit $1 trillion for the first time in early January. Now the total market value of cryptocurrencies is $1.7 trillion.
Altcoins prices keep rising
Altcoins, an alternative currency to Bitcoin, also did well this week.
Ethereum is the largest cryptocurrency alternative to Bitcoin. Today’s price hit $2010, an increase of 3.81% over yesterday’s $1933. Ethereum’s weekly price change is 9.03%.
Binance Coin (BNB) jumped to the third largest coin by market capitalization this week. Over the past 24 hours, the price is up 15.97% to $298.72. The weekly price rose 124.58% – the highest among the top cryptocurrencies. Yesterday the BNB hit an all-time high of $399.
Polkadot, the fifth largest cryptocurrency by market capitalization, is up 17.15% in the past 24 hours and 29% over the past week. The current price is $38.12. Cardano (ADA), the sixth largest company, is up 15.53% last day to $1.07 today and 14.70% last week.