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SÃO PAULO – After several all-time highs in recent weeks, Bitcoin has reached another major milestone, surpassing the market value of $ 1 trillion for the first time since its inception.
The world’s largest cryptocurrency has traded close to stability over the past two days, but started to gain momentum on Friday morning (19), reaching the $ 54,000 level, prompting an expressive new appreciation.
At 4:30 p.m. (Brasilia time), Bitcoin had an appreciation of 5.7% in the accumulated 24 hours, quoted at $ 55,095. Meanwhile, in Brazil, the digital currency is worth R $ 301,570, with gains of 5%.
With this new rise, the cryptocurrency has accumulated an appreciation of more than 400% in dollars in the last four months, with around 90% only in 2021.
There were no news to justify the start of this Friday, but analysts highlight the continuity of the movement that began in October last year.
Also Read: Inputs From Institutional Investors Helped Increase Bitcoin Almost 400% In 4 Months, But Is It Sustainable?
Bitcoin “started to grow so much that it possibly creates its own demand as companies and institutions begin to venture into a field they would not have touched a few months ago,” Deutsche Bank research strategist Jim Reid said in a report.
“Ironically, Bitcoin is becoming a credible asset class for many by making up so much lately and also gaining growing institutional adherence,” he explains.
Still in 2020, companies like payment giant PayPal announced that they would accept cryptocurrency as payment, helping to start the strong upward movement.
More recently, electric car maker Tesla reported buying $ 1.5 billion in bitcoin in a strategy to start accepting the asset as payment. Days before, its CEO, Elon Musk, also demonstrated his support for the digital currency.
Analysts note that incoming news from major institutional investors like these helps to give Bitcoin more credibility and also attracts new users and investors, who learn more about the cryptocurrency market and maintain the appreciation scenario.
If, on the one hand, this strong increase raises the risk of a correction in the short term, experts point out that in the long term the trend of Bitcoin is appreciating, mainly because there are fundamentals that support the movement, different from what happened in 2017. when the currency quickly jumped to $ 20,000 and fell 70% in the next two months.
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