Bitcoin's (BTC-USD) price surged past $51,000 ($36,734) on Wednesday, a new record as the cryptocurrency gets acceptance among mainstream investors. Some analysts expect it could soon go as high as $70,000.
This was just a day after bitcoin topped $50,000. It went as high as $51,140, before trading at $50,828.83 as of 8.20am in London.
Its new high extends a bull run for bitcoin that began last October.
Simon Peters, cryptoasset analyst at multi-asset investment platform eToro, said: “Bitcoin’s incredible rise this year shows no sign of abating. This latest landmark shows how it now has to be considered a mainstream investment asset."
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He explained that the fact that major multinational corporations, from BNY Mellon (BK) to Mastercard (MA), "are queuing up to lend support to bitcoin demonstrates the clout it now holds. Its buying power is only going to become greater as more big names jump on board."
The rally has coincided with increased institutional adoption. PayPal (PYPL) said last year it would allow customers to handle the token through its platform and Mastercard followed suite last week. BNY Mellon, America's oldest bank, said it too would handle bitcoin on behalf of clients, paving the way for more money to flow into the market.
“Ultimately, bitcoin is disrupting the status quo, and capitalising on the waning power of the dollar. As retail investors look to hedge against inflation, and institutions look for avenues to help drive growth, there’s no reason why $70,000 can’t soon be the new normal" Peters said.
"Bitcoin’s ascent from $40k to $50k took 6 weeks, a relative snail’s pace given its move from $20k to $40k happened in 3 weeks," said Antoni Trenchev, chief executive of cryptocurrency company Nexo.
He said the next big price milestone would be $100,000.
The move “highlights the power that Elon Musk has in shaping price action and moving markets. He’s now putting his money (shareholders’) where his mouth is,” noted Neil WIlson, chief market analyst for Markets.com at the time.
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