Bitcoin continued to climb Wednesday, as it surged above the $51,000 level for the first time. The red-hot cryptocurrency hit a new record price of $51,715 at around 4:50 a.m. ET, according to data from Coin Metrics. It was the last trading over 5% higher at $51,500 at the time of writing. This is the highest bitcoin’s price has ever gone as it continues to extend its massive winning rally.
Major investment banks appear to be warming to bitcoin.
On Wall Street, major investment banks appear to be warming to bitcoin. JPMorgan recently said it’s looking seriously at the asset class, while Goldman Sachs has also shown an interest in crypto. Meanwhile, a division of Morgan Stanley is reportedly considering adding bitcoin to its list of possible bets, as reported by CNBC. Major companies like PayPal and Mastercard have made significant moves to support cryptocurrencies. As reported earlier, Tesla last week said it had invested $1.5 billion into bitcoin and planned to accept the digital currency as payment for its products. Bitcoin’s latest rally has reminded many investors of its massive ascent to nearly $20,000 in 2017.
Institutional interest behind bitcoin’s massive winning rally.
Bitcoin has since staged a fierce comeback, more than quadrupling in 2020 and gaining over 70% since the start of this year. Bitcoin’s proponents say it’s down to increased demand from institutional investors as well as corporate buying of the digital currency from the likes of Tesla, Square, and MicroStrategy. Skeptics, on the other hand, worry bitcoin may be the biggest market bubble in financial markets. Strategists at the banking giant JPMorgan said in a note Tuesday that, unless bitcoin’s volatility starts to ebb, its current price “looks unsustainable.”