What fuelled Bitcoin’s recent push to US$61,000

Source: Craig Hastings ,Shutterstock

Summary

  • Bitcoin has made a new lifetime high of around US$61,788.
  • After the previous high of US$58,300 odd levels in February 2021, Bitcoin had taken a decent correction of around 25 per cent.
  • The optimism has fueled the recent push to the record high after US President Joe Biden signed a massive US$1.9 trillion economic relief package.

On 13 March 2021, Bitcoin had made yet another record, surpassing the US60,000 mark for the first time. The rally in Bitcoin continues to take the largest cryptocurrency to sky-high levels, as it has made a new all-time high of US$61,788.

Image Source: ID 142334515 © Aoutphoto | Megapixl.com

The recent push to the record high has been fueled by the optimism in the financial markets after US President Joe Biden signed a massive US$1.9 trillion economic relief package, the first of his regime. The stimulus fueled rally has prompted investors to throw caution out of the window as even at these high levels, the demand does not seem to be getting subdued.   

Bitcoin has been making headlines since the beginning of this ongoing rally from October 2020, when the bellwether of the crypto world was trading just around US$11,000. Last year Bitcoin ended the fourth quarter of 2020 with a hefty gain of around 170 per cent to around US$29,000, after which it only took a week to surpass the US$40,000 mark.

After the previous high of US$58,300 odd levels in February 2021, Bitcoin had taken a decent correction of around 25 per cent. However, the correction didn’t last for long and served the bulls a buying opportunity, just like every other dip during this rally in the past.

Read More: Bitcoin Stays Below $50,000 As Worries Over Digital Yuan Resurface

There have been several reasons that have worked as a catalyst for the rally. After ramping up vaccination drives and loads of economic support from the government, the improved economic outlook has made investors switch from safe-haven assets like gold to riskier assets. Consequently, gold has lost about 18 per cent from its peak made in August 2020.

Image Source: ID 113841492 © Photovs | Megapixl.com

Another reason has been the institutional demand from hedge funds, institutional investors and HNIs. The changes in the crypto payment landscape is what luring these astute investors to the crypto space. Developments such as Tesla planning to accept Bitcoin for payment, Jack Dorsey’s Square increasing its stake in Bitcoin by US$170 million etc., are increasing the investors’ confidence.  


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