Bitcoin surges past US$50,000 for first time

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  • 2021-02-16 HKT 23:22″ title=”Bitcoin hit the headlines in 2017 after soaring from less than US$1,000 in January to almost US$20,000 in December of the same year. Photo: AFP”>


    Bitcoin hit the headlines in 2017 after soaring from less than US$1,000 in January to almost US$20,000 in December of the same year. Photo: AFP
    Bitcoin hit the headlines in 2017 after soaring from less than US$1,000 in January to almost US$20,000 in December of the same year. Photo: AFP

Bitcoin soared above US$50,000 for the first time on Tuesday as an increasing number of corporate heavyweights back the world’s most popular virtual currency.

At around 8.30pm Hong Kong time, Bitcoin hit an all-time high of US$50,547.70, marking a 4.4-percent gain since Monday.

Bitcoin, once the preserve of internet geeks and hobbyists, has since exploded in popularity and has now rocketed by almost 75 percent in value so far this year.

“The crypto king has crossed the 50K price level for the first time as institutions are all over it,” said AvaTrade analyst Naeem Aslam.

“There is a lot of FOMO (fear of missing out) among traders as the price is going through the roof and we have limited supply.”

It later pulled back to stand at US$49,080.30 at about about an hour and a quarter later.

“The rally has still a lot of power left and the move is going to continue towards the actual target of US$100,000,” said Aslam.

“Of course, there will be some bumps but investors should consider them as an opportunity to bag some bargains.”

Bitcoin has been on a meteoric rise since March, when it stood at US$5,000, spurred by online payments giant PayPal saying it would allow account holders to use cryptocurrency.

The unit blasted its way past US$45,000 last week after Elon Musk’s electric carmaker Tesla invested US$1.5 billion in the virtual unit.

In a further boost, Tesla also unveiled plans to accept the cryptocurrency from customers buying its vehicles.

Wall Street player BNY Mellon then jumped aboard the Bitcoin bandwagon, announcing plans to accept digital currencies.

The moves came after Mastercard also announced it would accept the unit, even as many regulators remain sceptical.

Adding further legitimacy, Twitter chief Jack Dorsey revealed last week that he and rap mogul Jay-Z were creating a fund aimed at making bitcoin “the internet’s currency”.

Bitcoin, which was launched back in 2009, hit the headlines in 2017 after soaring from less than US$1,000 in January to almost US$20,000 in December of the same year.

The virtual bubble then burst in subsequent days, with bitcoin’s value then fluctuating wildly before sinking below US$5,000 by October 2018.

However, strengthening corporate support has transformed the outlook this time around, commentators say.

“Growing corporate support for the crypto makes this a very different market to what it was in 2017,” noted Markets.com analyst Neil Wilson.

Bitcoins are traded via a decentralised registry system known as a blockchain.

The system requires massive computer processing power in order to manage and implement transactions.

That power is provided by miners, who do so in the hope they will receive new bitcoins for validating transaction data. (AFP)