It's Another day, another all-time high for the leading cryptocurrency.
Bitcoin set a new high mark of $58,332.36 on Sunday, bringing the leading cryptocurrency's year-to-date gain to over 100% in less than two months into the year. From the year 2020, BTC rose 305% so far.
Some are attributing the astonishing rise to massive demand in the market from buyers that are looking to hedge against inflation as governments keep spending and central banks keep printing money in a desperate effort to stop the economy from sinking during the pandemic. Though, the key indicators aren’t showing inflation at all despite all the printing and spending of fiat money.
“Through the insatiable buy-side pressure from exchange-traded fund (ETF) issuers, closed-end funds and large public corporations adding bitcoin to their positions, demand is massively outstripping supply,” said John Willock, CEO at Blocktane.
The ongoing ramp-up in the BTC price was ignited earlier this month by Tesla, when the electric-automobile manufacturer said it had purchased $1.5 billion worth of the bitcoin for its treasury. This move sparked a round of playing "who's next?" in terms of investing treasury funds in BTC and the resulting hype helped focus the attention of main street investors on the cryptocurrency sector overall.
There is a strong speculation among community that the series of all-time highs reached over the last several days is at least partly because of BTC-hungry MicroStrategy, which on Friday morning said it had raised more than $1 billion of debt in order to fund even more purchases of the cryptocurrency. The price of BTC had risen more than $5,000 since this announcement.