Bitcoin Crosses $50,000 Mark to Set New Record High

The year of Bitcoin rages on. After breaking through the long-eyed $20,000 late last year, the cryptocurrency’s value has continued to skyrocket. In fact it just set yet another new record as it sailed past a major milestone.

After initially popping through the $50,000 threshold earlier in the week before pulling back, $BTC continued to rally. On Wednesday, the cryptocurrency climbed past $52,000 and has stayed on the far side of that mark in the hours since. Meanwhile, the second-largest crypto-asset Ether has also seen record highs as of late, trading for as much as $1,930.

While there are several potential reasons why cryptocurrencies are surging, one theory involves Bitcoin’s limited supply. Famously, Bitcoin has a finite cap as only 21 million coins will ever be mined. This stands in contrast to fiat currencies such as the dollar — especially during a time of economic stimulus efforts. As Morgan Creek Digital Assets co-founder and partner Anthony Pompliano explained to CNBC, “There were trillions of dollars that were printed and injected into the economy and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was Bitcoin.”

Another big reason why Bitcoin has been getting a boost is thanks to its increasing mainstream acceptance. For example, last week, Mastercard announced plans to support select cryptocurrencies directly on its network. In a post detailing this decision, Mastercard’s Raj Dhamodharan wrote, “[W]e are here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want. It should be your choice, it’s your money.” Elsewhere, PayPal began allowing users to purchase Bitcoin and other assets on the platform late last year.

In addition to enabling crypto purchases, some companies are also investing in Bitcoin. Most notable in this category is Tesla, which announced it had purchased $1.5 billion worth of Bitcoin earlier this month. Incidentally, $BTC has increased by more than $10,000 per coin since that purchase, meaning that their holdings are now likely worth closer to $1.85 billion if not more.

Looking ahead, per usual, there are an infinite number of price predictions for where Bitcoin could go. Among them, as CNBC reports, JPMorgan Chase put a “theoretical” long-term price target of $146,000 on Bitcoin last month. As for the aforementioned Pompliano, he believes that Bitcoin could hit $500,000 by the end of the decade and even reach $1 million in an unspecified amount of time.

Of course as always, there’s really no way of knowing what’s ahead for Bitcoin or other cryptocurrencies. At the same time, the acceptance that such assets have seen in recent months has been groundbreaking. Therefore, while Bitcoin may be setting plenty of records this month, there may be many more milestones in its future.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Robinhood Reveals More Details on Upcoming Retirement Account

After officially announcing plans for retirement accounts during an earnings call last month, Robinhood has now revealed more details about the upcoming feature and opened a waitlist for customers. First, Robinhood Retirement will offer both Roth and Traditional IRAs to users. With these accounts, customers will be able to invest in stocks and ETFs. Additionally, accountholders will be able to craft a custom portfolio and will be able to view...

Discover Announces 5% Bonus Categories for First Quarter of 2023

The popular Discover It card — which features 1% on all purchases as well as a slate of bonus rotating categories each quarter — has revealed what purchases will earn cardholders that 5% bonus starting January 1st. For the first quarter of 2023, Discover It cardholders can earn 5% back on grocery store, drug store, and select streaming service purchases. However, there are a few asterisks to note with this offer....

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...