The price of bitcoin dropped to around $60,000 on Monday, taking a breather from the weekend’s record high as investors prepared for inflation worries and U.S. stimulus spending to propel it even higher. Bitcoin slipped as low as $59,000 early in the Asian session, falling from Saturday’s record high of $61,781.83. Bitcoin has witnessed a massive winning rally this year as the price of the leading cryptocurrency continues to reach new all-time highs.
Bitcoin has more than doubled in 2021.
Bitcoin’s price has more than doubled this year alone, after quadrupling last year. “Investment by institutional investors and corporates is increasing. It’s what I call the financialization of bitcoin,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities, as reported by Reuters. The main reason attributed to the massive rise in bitcoin’s price is the increased interest in the crypto industry by major institutions. As reported earlier, Tesla had invested $1.5 billion in bitcoin sometime in January this year. Reportedly, Tesla has already made off with nearly a billion dollars in profits from its investment.
U.S. President Joe Biden signed his $1.9 trillion fiscal stimulus package into law.
An improvement helped Bitcoin’s weekend surge in risk appetite in financial markets after President Joe Biden signed his $1.9 trillion fiscal stimulus package into law and ordered an acceleration in vaccinations. That momentum carried into thinner markets on the weekend, with technical factors magnifying the move higher, according to Justin d’Anethan, sales manager at digital asset company Diginex in Hong Kong. Seth Melamed, the Tokyo-based chief operating officer of cryptocurrency exchange Liquid, said legislation of the sort India is proposing won’t be an impediment to further gains for bitcoin. As reported earlier, the Indian government is planning to ban cryptocurrencies and issue a framework for a central bank-backed digital currency.