Bitcoin Approaches Record High as Risk-On Rally Accelerates

Bitcoin is picking up speed again, nearing a record high last month amid a broader risk rally in financial markets.

The world’s largest digital asset surged as high as $ 57,679 and rebounded from a router in late February, following the all-time high of $ 58,350 on February 21. President Joe Biden signed the $ 1.9 trillion pandemic relief bill on Thursday, fueling optimism in financial markets.

“Bitcoin’s resilience is proving to be legendary,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender. “Each correction is an opportunity to reset the upward movement and start over.”

Bitcoin has grown more than sevenfold over the past year due to increasing institutional interest. Advocates advocate cryptocurrency as a store of value similar to gold that can serve as a hedge against inflation and a weaker dollar. Others argue that the rally is a giant, momentum-driven bubble that is on the right track to burst as it did in the 2017-2018 boom and bust cycle.

However, industry participants argue that the surge in institutional adoption will prevent this fate, specifically Tesla Inc.’s $ 1.5 billion investment in Bitcoin and Elon Musk’s CEO’s endorsement of digital asset on social media Elon Musk. Billionaire Mike Novogratz, of Galaxy Digital Holdings Ltd. said Bitcoin could hit $ 100,000 by the end of the year.

“The White House announcement is of great importance to risk-weighted assets in general, and crypto assets in particular,” said Simon Peters, an analyst at multi-asset investment platform eToro, adding that the “floodgates” are now on new ones Liquidity are open.

– With the assistance of Eric Lam

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