Bitcoin jumped again on Wednesday to set another record high after breaking $ 50,000 for the first time the day before.
The largest cryptocurrency rose 4.8%, to about $ 50,927, according to a price composition compiled by Bloomberg. The token increased more than five times in the past year.
The rise of Bitcoin for some is emblematic of speculative foam in financial markets awash with stimuli. The faithful crypto counters that the digital asset is attracting more public attention, especially after Tesla Inc.’s recent purchase of $ 1.5 billion. MicroStrategy Inc. said on Tuesday that it will sell $ 600 million in convertible bonds and use the proceeds to buy more tokens.
MicroStrategy’s step is “a warning sign, if there ever was one, that things are getting out of hand in the cryptographic world,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte, wrote comments by email.
Others take a different view, arguing that the demand for institutional investors and companies should expand, generating additional gains.
“There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularized: moving institutional balance sheets to Bitcoin to protect against inflation,” said Nicholas Pelecanos, director NEM negotiations.