As institutional buying increases, Bitcoin hits $61k in the largest rally of 2021. People were sceptical after the prices crashed, but now it has bounced back and with more valour. The currency rose by around 7.5% on 13th March and is currently trading at $61,300. Bitcoin moving past the $60,000 price point could act as a stimulus for the coin’s movement past the $70k barrier. Seeing the bigger picture, all of this adds up to reach $100k in some time as Bitcoin bears will be left hanging in the open. This recent price development has also made Bitcoin gains cross 1000% in the last one year.
Bitcoin hits $61K!
As Bitcoin has crossed $61k, many might be wondering what made such a rapid push even possible. Well, there are a lot of factors. After Bitcoin touched the $43k price point, it touched a plateau and didn’t go down further. In fact, the price of Bitcoin has risen thereafter and has been dominated by the bulls. Those who were comparing it with Gold, saying that it will never replace it, were also shocked as Gold prices fell. These facts may seem minor but did add up. And finally, the $1.9T stimulus package that has sent inflation off the charts was one of the major factors for the rising prices of Bitcoin.
It’s about understanding or knowing the fact that the demand for Bitcoin has risen significantly in the past few months. Institutions are gobbling up as many of them as they could get, and there isn’t just enough of them for everyone. Big firms like Goldman Sachs and JP Morgan are reporting that the demand for crypto is increasing. All their clients are asking the same questions. Among all this, the US government is also selling its own crypto holdings, which no one knows where it got from.
What’s next?
As more institutions join in and invest in the cryptocurreny, we are going to see further price increases. A report suggests that many Asian companies have already invested in the cryptocurreny but are not very vocal about it. While other companies like Meitu, Square and Microstrategy have announced their Bitcoin investments on social media platforms like Twitter. Before talking about what’s next, I think it is important to know where it all started. I would say Tesla $1.5B investment started this bull, really. It had its ups and downs but is still going strong.
For now, the next target is $70k by the end of this month and $100k by the end of the 1st half of 2021. And if institutional interests stay strong and governments keep releasing more stimulus packages, nothing will stop this rally.
Did you know with Bitcoin crossing the $61k mark, its market cap became 80% of silver and over 10% of gold? What are your thoughts on the same? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: What are NFTs? Should you buy or avoid them?
