Generally, the crypto market has been surging over the past months, resulting in an increase in several digital assets.
The price of Bitcoin rebounded this week, causing a rise in altcoins like Ether (ETH) and Binance native token BNB. Notably, several factors have been influencing the continuous spike in BTC price. Following Tesla Inc (NASDAQ: TSLA) announcing its $1.5 billion investment in BTC, the digital asset jumped and stirred reactions from the crypto community, who are expecting the next public-traded company to acquire Bitcoin. Bitcoin also got a boost after the US government approved the $1.9 trillion stimulus plan.
Bitcoin Soars, Approaches $60K
Towards the end of 2020, Bitcoin was pulling in constant gains, and there were predictions that the trend would continue. As predicted, Bitcoin continued to hit new highs in 2021. The king coin touched an all-time high of $50,000 on the 16th of February. At the time, BTC had soared 200% in three months.
At the beginning of the year, there were both bullish and bearish predictions on Bitcoin. According to a survey conducted by finder.com, some analysts believe that Bitcoin will continue to surge till mid-2021.
At press time, Bitcoin is up 2.89 % to $56,312.63. The leading digital asset has traded as high as $58,091.06 in the last 24 hours, and the crypto community expects it to break the $60k milestone.
As stated in a Forbes report, investing legend and founding partner of Mark Mobius warned that a Bitcoin dip may affect tech stocks “very badly.” Speaking to Forbes, Mobius said:
“One of the things I fear, believe it not, is a decline of the bitcoin price. I think the relationship between bitcoin prices and the tech market is very close.”
Speaking further, Mobius said he is not predicting that Bitcoin’s price would drop and that he hopes that the price “stays up.” He added:
“I just hope it stays up because tech stocks then will because tech stocks then will be able to revive.”
Crypto strategist at LMAX Digital Joel Kruger talked about how the slower-than-expected inflation rate in the US in February fueled the recent Bitcoin gain. He told CoinDesk that risk sentiment in the global market had given the Bitcoin market additional support.
ETH, BNB and Other Altcoins Join Bitcoin Rally
Currently, ETH is up 1.02% to $1,776.99. The price of Ethereum has spiked up to $1,843.82 in the last 24 hours, and hopes are high for further increases. Ethereum price has surged more than 50% over the past month.
BNB reached a new high of $332 on the 20th of February. The Binance coin has also grown about 800% in its year-to-date record.
Generally, the crypto market has been surging over the past months, resulting in an increase in several digital assets. Since the beginning of the pandemic, the crypto market has recorded an increased crypto adoption, while major crypto exchanges also reported growth in the transactions volume.