Bitcoin reached $50,000, a new milestone as the cryptocurrency continues its meteoric rise, Bloomberg reports.
Price Check-In: As of 9:00 a.m. ET, Bitcoin retreated to $48,844.63, while Ether, a rival crypto, stood at $1,775.95, according to CoinMarketCap.
Why It Matters: In a year where borrowing rates from central banks are near zero and the federal government is handing out unprecedented amounts of stimulus, the stable hand of Bitcoin has offered exciting growth and an inflationary hedge.
- “Bitcoin advocates have criticized the moves as money printing even though inflation remains subdued.”
Flashback A Few Months: Bitcoin ended 2020 with around a 170% quarterly surge to $29,000. From there, it only took seven days for the cryptocurrency to explode past $40,000. Six weeks later, here we are at $50,000.
But Why Is It Happening: Well, we’re now at a point where major people, companies and entities are embracing Bitcoin on a grand scale. Most recently, Tesla announced it added $1.5 billion worth of Bitcoin to its corporate treasury and that it would accept it as payment.
- Mastercard and Bank of New York Mellon Corp. also recently made it easier for customers to use crypto, while Morgan Stanley could be next on the Bitcoin horizon.
- “Whether it’s Musk, Mastercard or Morgan Stanley, the mood, music and momentum is impossible to ignore,” said Nexo co-founder and managing partner Antoni Trenchev.
Looking Ahead: As great as the gains are, investors should be ready to experience a pullback after the most recent milestone.
- Trenchev: “Short-term volatility is very much a feature of this bull market and investors should prepare accordingly.”
If you’re new here, welcome! From Morning Cents 2/11:
The structural revolution continues, one step at a time. I care much more about news pieces like this than I do the daily price of bitcoin. Confidence in fundamentals is the only way to truly have the proverbial “diamond hands”.