Bitcoin prices on Sunday were approaching a psychological mark at around $ 50,000.
The weekend’s move pushed the world’s number 1 digital asset to a new record high of $ 49,716.44, according to CoinDesk, adding a steady move towards all-time highs as more attention is paid. and more institutional investments in cryptos provided a favorable short-term scenario for the virtual market.
Bitcoin BTCUSD,
the higher momentum led to a cumulative gain for the year of more than 64%, compared to a 2.8% increase for the Dow Jones Industrial Average DJIA,
an increase of 4.8% for the S&P 500 SPX index,
and seeking a 9.4% rise for the Nasdaq Composite Index COMP,
so far in 2021.
While there is no specific news to help extend earnings to bitcoins, the rise comes as the asset appears to be gaining momentum and increasing the attention of the traditional investment community.
Over the weekend, Bloomberg News, quoting acquaintances, reported that a Morgan Stanley MS,
The investment management unit, Counterpoint Global, was exploring the purchase of crypto for its investors.
That report was released after The Wall Street Journal said last week that Bank of New York Mellon, BK would retain, transfer and issue bitcoins and other cryptocurrencies on behalf of its customers.
“Digital assets are becoming part of the mainstream,” Roman Regelman, chief executive of digital business and asset services at BNY Mellon, was quoted to the WSJ.
In addition, last Wednesday, Mastercard MA,
said it would support certain cryptocurrencies on its network later this year and Tesla Inc. TSLA,
He said he bought $ 1.5 billion in bitcoin and would eventually allow customers to use the cryptocurrency to buy his products.
Reading: Why did Tesla buy bitcoin?
See too: Why is dogecoin falling? Crypto has dropped 20% since its record on Monday
PayPal Holdings Inc. PYPL,
in November, it opened its cryptocurrency platform to all U.S. customers after implementing a more restricted implementation.
Several major Wall Street investors, including Stanley Druckenmiller and Paul Tudor Jones, have also adopted bitcoin. Famous investor Bill Miller, founder of Miller Value Partners, in a letter to customers recently reaffirmed his optimistic view of bitcoin.
To be sure, recent developments do not guarantee a higher uninterrupted rise for bitcoins and other cryptocurrencies. In late 2017, the price of bitcoin, close to $ 20,000, staged an epic collapse, dropping to a nadir around $ 3,000 before recovering years later.
Optimistic investors also note that additional gains for the asset may depend on help from regulators in establishing clear protections for investors and rules for the use of cryptocurrencies, which are sometimes seen as a tool for swindlers, rather than a medium of exchange. and reserve of value as GC00 gold,