The market value of bitcoin crossed the trillion-dollar mark once again on Tuesday as the cryptocurrency’s recent rally gained some momentum.
The world’s largest digital coin price rose 6.3 percent from a day earlier to $ 54,274.13 at 10:44 a.m., giving it a total value of $ 1.01 trillion. CoinDesk data show.
The market value of bitcoin was more than $ 1 trillion between February 19 and February 22, before its price fell by the end of last month, Coinmarketcap.com.
Tuesday’s rally further indicated that institutional investors and large corporations are coming around cryptocurrencies.
For example, bitcoin-focused investment firm NYDIG Announced On Monday it raised $ 200 million from a group of investors including Wall Street investors Morgan Stanley, New York Life and billionaire financier George Soros’ Soros Fund Management.
NYDIG also said insurers now own more than $ 1 billion of bitcoin-related risk on the company’s platform, a fact that has been called “an example of accelerating institutional bitcoin adoption”.
About a month after the firm’s announcement, Tesla revealed that it had bought $ 1.5 billion worth of bitcoins, following in the footsteps of smaller companies such as MicroStrategy and Jack Dorsey Square.
The electric-carmaker’s investment helped send bitcoin to a record high of $ 58,332.36, but the coin later crashed after being accepted on Twitter by billionaire CEO Elon Musk that it seemed to be worth too much.
While bitcoin is still trading below last month’s record, its price has climbed nearly 87 percent so far this year according to coins, gaining mainstream traction.
The popularity of bitcoin has increased due to its perceived resistance to inflation and is expected to become a more widely used payment method. But skeptics argue that its wild price swing could keep many companies away.
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