A day after the renowned cryptocurrency rose over $5k and along the way achieved a $1 trillion market capitalization, Bitcoin [BTC] on Saturday reached yet one more all-time high, crossing $57k for the primary time and sparking a broad rally among other crypto assets.
The price of Bitcoin [BTC, +6.61%] reached a high of $57,492 USD prior to settling back to $56,264 USD up 8.77% over the past 24 hours. Before yesterday’s fun and games started, BTC was at about $51.6k.
BTC ended 2020 at a bit shy of $29k following a better-than 300% gain over the earlier 12 months. Now, that eye-popping performance is beginning to look tame as less than two months into 2021, BTC has nearly doubled, with a 95.4% gain.
Some are attributing the astonishing rise of BTC’s price to the tremendous demand from buyers looking to hedge against inflation as govts keep spending and central banks keep printing money trying to stay their economies browsing the pandemic.
“Through the insatiable buy-side pressure from ETF issuers, closed-end funds, and enormous public corporations adding bitcoin to their positions, demand is massively outstripping supply,” added John Willock, chief executive at digital asset exchange Blocktane.
The present ramp-up within the price of BTC was ignited earlier in the month by Tesla when the electric automobile manufacturer revealed it had purchased $1.5 Bln of the cryptocurrency for its treasury. This sparked a round of playing “who’s next?” in terms of investing treasury funds in BTC and therefore the resulting hype helped focus the eye of main street investors on the world oversell.
Rising alongside BTC has been Ethereum [ETH, +3.80%], the native token of the Ethereum blockchain. Earlier on Friday, long after most of the action in BTC had died down for the instant, the worth of ETH set a new all-time high of its own, surpassing over the $2k mark for the primary time ever.
The excitement over BTC and ETH both hitting new peaks has now spread now to the remainder of the crypto, with most tokens up Saturday morning and a variety of them posting double-digit percentage gains.
While the gains in UNI and AAVE seem linked because both are major players within the exploding DeFi section of the cryptocurrency ecosystem, most of Saturday’s gains may simply flow from to investors trying to find subsequent BTC or ETH or because advocates of certain tokens are out there within the chatrooms telling anyone who will listen that their coins are going to be subsequent ones to take off.