The representation of the Bitcoin virtual currency is seen on a motherboard in this photographic illustration taken on April 24, 2020.
Given Ruvic | Reuters
Bitcoin hit a record high of $ 60,000 on Saturday morning, continuing its rally as large companies and financial institutions adopt cryptocurrencies.
Bitcoin, the world’s largest cryptocurrency, was at $ 60,415.34 at 7:25 am ET, according to Coinbase, recovering from a fall in late February that followed an earlier record that month.
The digital currency has risen 963% in the last 12 months, according to Coinbase. Its value exceeded $ 1 trillion last week for the second time this year.
Bitcoin’s recovery is driven in part by increased adoption by large institutional investors and companies and speculative demand. Tesla bought $ 1.5 billion in bitcoins and plans to accept digital currency as payment for its products, a decision that sparked broader interest.
Mastercard also said it will open its network for some digital currencies. And PayPal and BNY Mellon made some moves in space.
Bitcoin believers argue that the current high is fueled by demand from institutional investors and is different from previous highs, such as when bitcoin soared to nearly $ 20,000 in late 2017, before losing about 80% of its value in the year Following.
Others argue that bitcoin and other cryptocurrencies have no intrinsic value and fear that bitcoin may be one of the biggest stimulus-driven market bubbles ever recorded.