The price of bitcoin jumped as much as 3.6% to US$49,913 in Asian trading on Tuesday, according to a composite of prices compiled by Bloomberg Bitcoin’s volatile, fivefold advance over the past year towers above the returns from more traditional investments like stocks, gold, and commodities. The price of bitcoin has soared due to the widening adoption of the cryptocurrency, most notably Tesla’s disclosure this month of a $1.5 billion purchase. Increased institutional interest has boosted the price of the cryptocurrency to new all-time highs.
Bitcoin is expected to continue to rise in the short term.
“Bitcoin volatility is likely to continue rising in the near term and remain elevated until it settles in around its next plateau,” said Mike McGlone, a commodity strategist at Bloomberg Intelligence, who added that $100,000 might be a longer-term target. A flurry of recent announcements indicates that bitcoin is winning more mainstream attention after Tesla’s invested catapulted cryptocurrencies onto corporate treasurers’ agenda worldwide. Earlier in Canada, officials approved the first North American bitcoin exchange-traded fund. Bitcoin has witnessed some really winning rally this year and is continuing to do the same.
Bitcoin continues to gain mainstream exposure.
Since Tesla’s investment in the leading cryptocurrency, bitcoin, the market has seen a frenzy. Several other multinational companies have made statements about their potential interest in bitcoin and other cryptocurrencies. As reported earlier, international payment giant Mastercard became the latest mainstream firm to embrace cryptocurrency this week, announcing plans to begin allowing cardholders to transact in certain cryptocurrencies. The payment firm is also “actively engaging” with central banks worldwide on their plans to launch new digital currencies, Mastercard said in a blog post.