According to Coin Metrics data, the digital coin reached a record high of $38,080 a few hours later getting the $37,000 level.
Bitcoin was 7% higher than the previous day. Since the beginning of 2021, the cryptocurrency has risen approximately 30% and in the last 12 months almost 370%.
Until then, for the first time on Thursday, according to Coinmarketcap data, the value of the entire market in cryptocurrency, which includes bitcoin, and other digital coins like ether or tether, exceeded $1 trillion. With a market value of more than $700 billion, bitcoin is by far the most dominant cryptocurrency.
A lot of reasons, including more buying from wealthy individuals, have attributed to the revival of Bitcoin. For example, high-profile investors such as Paul Tudor Jones bought digital currency.
Many bitcoin bulls assume the “digital gold” cryptocurrency, a possible haven asset, and an inflation hedge. In the long term, Bitcoin could reach $146,000 as gold as the “alternative” currency competes. Strategists of the investment bank noted, however, that bitcoin had to be significantly less unstable in order to achieve this price. The wild price fluctuations in Bitcoin are known.
With governments across the globe embarking on broad fiscal stimulus programs, the idea of bitcoin as a hedge from inflation continues to evolve. This could lead to an increase in inflation, according to analysts.
Many retail investors have also recently joined the race, as they fear to miss the chance to make the latest bull run easy and fast.
The growth of Bitcoin was also helped by activities by large financial companies such as PayPal and Fidelity. PayPal launched a feature last year which enables users to invest in cryptocurrencies. Later this year, PayPal plans to make crypto payments across the vast retail network.
The co-founder of the Morgan Creek Digital hedge fund, Anthony Pompliano said that Bitcoin has seen more adoption as a means to pay. He claimed that the total Bitcoin transaction volume in 2020 was higher than that of Venmo, PayPal, or Apple Pay.
But several bitcoin opponents — including David Rosenberg, Rosenberg Research economist, and strategist — called bitcoin a bubble. Rosenberg said to CNBC at the beginning of this month that in such a short time, bitcoin had a parabolic move, which was highly abnormal.