Bitcoin and Ether’s Record Highs
The popularity of Bitcoins is on an unstoppable surge. People worldwide are aggressively investing in cryptocurrency to benefit from the hefty profits. Ever since the pandemic, the world came to a standstill, but Bitcoins continue to rise.
However, on 14th April 2021, Bitcoin and other cryptocurrencies broke all records of elevating prices. It broke above $64,000 before Coinbase – the US’s largest crypto exchange’s anticipated stock market debut. Bitcoin rallied to an all-time high of $64,841 in the morning, and the price of the second-largest token, Ether, also rose and touched $2,400.
However, Coinbase’s initial pop faded, and Bitcoin trimmed down on its gains as the day passed, trading at nearly $62,000. Ether also dipped back to $2,330.
Coinbase’s stock market listing
The crypto exchange is the largest cryptocurrency company as of now which has gone public, and it started trading at $381 per share, resulting in a market cap of $100 billion on the same day. As the trading day passed, the share price fell to $328 per share, and Nasdaq gave Coinbase a reference price of roughly $250 per share.
The world’s second-largest digital asset exchange is the number one app to bring crypto into mainstream trading. The company had also posted an estimated $1.8 billion revenue in the first quarter of this year, as and when Bitcoin, Ether and other tokens’ prices skyrocketed.
Ever since Coinbase’s listing in the stock market, it has led to excitement in the crypto market by exchange providers and crypto traders/investors. Analysts feel that this debut has marked a great deal for cryptocurrency in the last few years. However, the token is still surrounded by high volatility and regulatory issues.
Bitcoin’s comeback
Bitcoin lost some share of its value last year, in 2020, during the novel coronavirus outbreak. It suffered its most significant price drop (the biggest 2-day fall) in 9 months in January 2021 but came out of it stronger. It more than doubled in price thereafter and is witnessing massive investors take part in cryptocurrency trading. Tesla invested $1.5 billion in the token. The Wall Street giants, including Goldman Sachs and Morgan Stanley, are also discussing offering their wealthy and prominent clients some crypto exposure.
Even with the global pandemic, market uncertainty, massive country-wide lockdowns and huge travel restrictions – Bitcoin has been the only financial asset to rise. The new-age digital currency does not seem to run out in any circumstances and has welcomed millions of investors to invest in the token. Analysts also state that Bitcoins can possibly touch the $100,000 mark in 2021.
Bitcoin conducted its third halving event in 2020, cutting down Bitcoin mining rewards by 50%. The mining prize came down to 6.25 BTC from 12.5 BTC. This resulted in a drop in coin circulation, which then resulted in a massive rise in its demand.
Can Bitcoin really touch the $100,000 mark?
In short, yes. Bitcoins, initially, were considered mysterious and non-reliable. However, over the years, bitcoins have gained popularity worldwide to an extent one cannot imagine. Its ever-increasing value adds to people’s reasons for fancying cryptocurrency, especially bitcoins. More and more financial institutions, including Paypal, JP Morgan and more, have started to offer crypto services, with additional retail investors interested in purchasing bitcoins more than any other financial instrument.
Despite the volatility and uncertainty in the crypto market, it is considered one of the most profitable financial instruments. The bitcoin value has surged immensely in the last few years, which has made sure of two vital points in the crypto market –
- The trust of investors in cryptocurrencies has strengthened
- Global trends have proven to be positive for the crypto market
Since Bitcoin is now associated with giant and reputed names like Tesla, most institutions have little fear in converting their cash reserves into bitcoins and hedge against possible financial crises. The total market capitalisation of bitcoins is $1.15 trillion, more than the market cap of any other possible token and is also higher than the market capitalisation of the world’s 3 largest banks – JP Morgan, Bank of America and The Industrial and Commercial Bank Of China summed together.
Rising Bitcoin Price Impacts on Investors
Most investors are now either shifting to Bitcoin or are adding up Bitcoins in their investment portfolio. Various cryptocurrency exchange-traded products have seen an increase due to the investors diversifying their portfolios and hedging against risk through cryptocurrency, as they now view bitcoins as a vehicle for speculation or a powerful hedge against inflation. They have stockpiled the digital currency, especially due to the fear that was born during the pandemic, regarding traditional assets crashing prices. The shooting Bitcoin prices has only made it evident for more and more investors to invest in the digital currency, whilst many have accumulated hefty profits already, who invested in Bitcoins some time back.
Concluding Note
The current globally trading price of Bitcoin is $62,817 – making it closer to $100,00 than it is to $0. With the speed at which the value has been rising, the day is not very far when bitcoins will be trading at $100,000. The recent global developments around the token are also a testimonial to the fact that every passing day, it is coming closer to becoming a mainstream asset class with a $100,000 mark. The prediction of bitcoins touching $100,000 is based on the stock-flow model; a model used to measure the scarcity of commodities and its correlation to the demand, implying that bitcoins trading at $100,000 is not a bubble and will come into existence by the end of 2021.
