Bitcoin is currently going through its best phase, with the value hovering around $50,000 in the week just gone by. The largest cryptocurrency by market capitalization continues its dream run – thanks to the institutional support and wider adoption the digital coin is receiving across the globe.
In terms of the year to date, Bitcoin has registered a 70% increase in valuation. This contrast starkly to the situation just a few months back when most of the traditional investing firms had written off Bitcoin owing to its rough patch since 2017 when it reached almost $20,000.
The year 2021 is proving extremely fruitful for Bitcoin, and the recent announcement by Elon Musk that his company will be accepting Bitcoin as a payment for its cars has further given a fillip to Bitcoin’s valuation. Tesla has invested around $1.5 billion in cryptocurrencies for providing transaction services in digital currencies. The BNY Mellon Corporation, a prominent investment firm, had also announced last week that it had constituted a new unit to help investors with the digital assets.
Another positive news had come in the form of approval of the Ontario Securities Commission that had launched the world’s first Bitcoin ETFs. BlackRock Inc has already added Bitcoin as an investment instrument for its two funds in January this year, further signifying the widening adoption of Bitcoin among institutional investors.
According to the Bitcoin forecast and market experts, the rise in the Bitcoin and other cryptocurrencies’ value is fueled by their adoption at an institutional level. The phenomenon will stay there for a long time, and according to Edward Moya (a senior market strategist with OANDA), the cryptocurrency segment will get a chunk of money that investors are going to put into the market in the coming time.
We have also witnessed the government authorities showing their will to embrace digital currency. For example, Florida city’s mayor has expressed the intention to embrace digital currency to attract technology businesses to the city.
Another prominent reason helping cryptos post strong growth is the entry of Apple into the cryptocurrency domain. According to the latest news, Apple Pay will allow Bitcoin and a few other popular digital currencies as a legitimate method of making payments on the app. The transaction will be conducted through the BitPay app, and for conduction transactions using digital coins, BitPay wallet will be available on both Apple Pay and Apple Wallet.