Bitcoin surges to record high of nearly $50,000 after support from major corporations

On Sunday afternoon, the world's preeminent cryptocurrency was priced at $49,716 (£35,720) per coin. The digital currency's current bull-run is driven by major corporations like Tesla, Mastercard, and BNY Mellon investing and supporting bitcoin. It is thought that other Fortune 500 companies, such as Apple and Oracle, will be next in adding the cryptocurrency to their balance sheets.

The fact that bitcoin rose to nearly $50,000 (£35,924) per coin was predicted by bitcoin pioneer Max Keiser who forecasted this new all-time-high last week.

Mr Keiser tweeted: "Bitcoin price, adjusted for stalled buy-orders stacked up at exchanges, is above $50,000 (£35924) right now."

The digital asset fell 2.4 percent on Monday.

In the last 24 hours, the price has held at around $47,925 (£34,433).

The current bullish sentiment for the digital currency has increased demand.

Now institutional investors are beginning to perceive bitcoin as a store of value similar to gold.

Last week billionaire investor Michael Saylor spoke to Yahoo Finance and forecasted that many major firms would soon move from traditional treasury assets like cash and bonds into bitcoin, which he has labelled, "digital gold".

Mr Saylor said: "I think there will be an avalanche of thousands of companies that will be coming to bitcoin as they start to see that this is a very high-quality treasury reserve asset, on parity with other reserve assets."

 

The current record bitcoin bull-run is much more stable and less volatile than that experienced in the boom of late 2017.

This has caught the attention of major investors who see this as a sign that the current price is based on "real" volume rather than short-term speculation.

There is now the belief by influential investors that bitcoin will develop into a mainstream asset class.

The cryptocurrency has seen the backing of major investors, such as Michael Saylor, Paul Tudor Jones, and Stan Druckenmiller.

These investors are positive the volatility of the cryptocurrency will eventually decline as demand broadens.

For instance, the bullish market sentiment was boosted by Tesla Inc.’s $1.5 billion (£1.08 billion) purchase.

Speaking to Bloomberg, Paolo Ardoino, chief technology officer at cryptocurrency exchange Bitfinex in London said: “Bitcoin is on a nascent journey to becoming an established asset class."

Today, Mike McGlone, a commodity strategist at Bloomberg Intelligence said: "Bitcoin, the largest cryptocurrency, has more than quadrupled in the past year and is close to breaching $50,000 for the first time.

"The market is designed to have a fixed supply of 21 million coins, which has drawn comparisons with gold.

"Tesla allocations are a key iteration of bitcoin going mainstream, which will pressure volatility toward that of gold and potentially, eventually below.”

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