By
Steve Muchoki
April 19th, 2024
Bitcoin is hitting new records. However, many critics of BTC maintain a position that the coin represents the biggest financial bubble in history.
The first-ever digital currency, also known as Bitcoin (BTC) has recorded yet another milestone, soaring to an all-time high of over $51K. This groundbreaking feat was attained today February 17th, as data from CoinMarketCap showed the coin is up 4.45% over the past 24 hours to $51,253.48 at the time of writing. Bitcoin has revealed its apparent uniqueness as a store of value as its price has been in an uptrend since the start of the year. Bitcoin (BTC) price has gained over 50% in 2021, signaling increased demand from both retail and institutional investors.
The involvement of Wall Street unicorns is ultimately responsible for fueling this current bull run. The latest $1.5 billion acquisition of the digital currency by electric vehicle maker Tesla Inc (NASDAQ: TSLA) has particularly influenced the price of BTC lately. Besides the Elon Musk-led company, Bank of New York Mellon Corp (NYSE: BK) is also amongst the latest financial institutions that have announced plans to offer Bitcoin services.
Amongst the core influences of mainstream investors buying up Bitcoin is that it attaches a high level of worth to the asset which improves the public’s perception. This situation can attract even more investors.
Bitcoin (BTC) Price: Should Retracement be Anticipated?
Many critics of Bitcoin and its fundamentals have often maintained a position that the coin represents the biggest financial bubble in history. While many align with this school of thought, a more compelling case has been presented by Michael Saylor, CEO of MicroStrategy Incorporated (NASDAQ: MSTR), a known Bitcoin whale.
Saylor believes the current bull surge is different from that seen back in 2017, in which Bitcoin lost over 80% of its value after attaining an ATH close to $20,000. According to the CEO, this current price pump is being fueled by institutional demand as against the retail backing the 2017 cycle received.
“I think bitcoin is a much more stable asset class today than it was three years ago,” Michael Saylor told CNBC’s “Street Signs Asia” program on Tuesday. “It used to be dominated by leveraged retail traders … on international markets with a lot of leverage.”
He also noted that:
“I think that starting in March of 2020, you saw institutions start to arrive, and I think in 2021 you’re going to see that trend continue. There’re enthusiasts for bitcoin as a medium of exchange,..but I personally believe that the compelling use case is a store of value.”
Based on this, the crypto space can expect more upswings in the coming days, or weeks as more institutional investors make their entry.
Bitcoin ETFs May Speed Up Mainstream Adoption
As reported by Coinspeaker, the duo of Canadian and Australian authorities have approved their first-ever Bitcoin Exchange Traded Fund (ETF) products. ETFs offer a more regulated way for investors to gain exposure to the cryptocurrency as it is traded on the stock exchange.
NYDIG has also filed an application with the US SEC for similar approval. Despite the commission’s negative stance about a Bitcoin ETF product, expectations mount that the current embrace by US firms will sway the regulator to grant the very first of such approvals.