Bitcoin broke through $50,000
As of Feb 16, Bitcoin broke through $50,000 hitting a fresh record high.
It just takes 39 days for the largest cryptocurrency to rocket to $50,000 from $40,000, mainly fueled by Tesla who recently signaled its confidence in Bitcoin. Thanks to Tesla’s $1.5 billion investment, as well as its intention to accept Bitcoin as a form of payment, more investors have rushed into the asset, and many traditional industries intend to add it to their balance sheets.
Similar to gold, Bitcoin, with a limited supply, is also regarded as a safe-haven asset. The coin was launched just over a decade ago, while gold has been the number one safe-haven asset for hundreds of years. However, people in this industry generally have high hopes that it can compete with gold in the future.
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As central banks around the world injected billions of liquidity into markets, mainstream institutional investors are looking to allocate their funds towards the new safe-haven asset, which will further strengthen Bitcoin’s status as “digital gold”.
Despite that, investors need to be aware of trading risks since the crypto market has been historically quite volatile.
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