Bitcoin Hits Another Record as Largest Token Extends Rally

Bitcoin is picking up momentum once again, topping $60,000 for the first time amid optimism that the largest digital token will achieve wider adoption.

The cryptocurrency was at 60,012 as of 12:22 p.m. London time, bouncing back from a rout at the end of February following a previous peak set that month. It’s benefiting from optimism in financial markets after President Joe Biden signed the $1.9 trillion pandemic-relief bill into law.

“Bitcoin’s resilience is proving to be the stuff of legend,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender. “Every correction is an opportunity to reset and restart the move upwards.”

Bitcoin is up about 1,000% in the past year amid signs of increasing institutional interest as well as speculative demand. Advocates champion the cryptocurrency as a store of value akin to gold that can act as a hedge against inflation and a weaker dollar. Others argue that the rally is a giant stimulus-fueled bubble on track to burst like it did in the 2017-2018 boom-and-bust cycle.

“The announcement from the White House is very significant for risk assets in general, and crypto-assets specifically,” said Simon Peters, an analyst at multi-asset investment platform eToro, adding that the “floodgates” are now open in terms of new liquidity.





Source: Bloomberg
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