Bitcoin Cracked $58,000 as Risk-On Rally Extends

The world’s largest cryptocurrency, Bitcoin, reclaimed its $1 trillion market value as risk-on rally accelerates. 

The rise in investor optimism was bolstered by the $1.9 trillion stimulus package signed by Joe Biden on Thursday. Intraday saw Bitcoin rose to a high of $58,098 before slightly retrieving down to $56,969 at the time of writing. The high today was not far from the record-high of $58,350 set on the 21st of Feb.

According to the managing partner and co-founder of Nexo, a crypto lender, Bitcoin’s resiliency has made every correction an opportunity to reset and move higher.

In the past year, the value of Bitcoin had risen by sevenfold, with advocators seeing it as a store of value similar to gold (XAUUSD) and a hedge against inflation and a weaker US dollar. On the other side, opponents argue that there is no intrinsic value to Bitcoin and a stimulus-fueled bubble may eventually burst.  

However, the rise of broader adoption from institutional players may likely support the future of Bitcoin. Especially after Tesla Inc’s $1.5 billion investment in Bitcoin and increasing online endorsements of digital assets. Moreover, Billionaire investor Mike Novogratz has suggested that Bitcoin could hit $100,000 by the year-end.

More on Bitcoin:

Kraken CEO said Bitcoin Could Go as High as $1 Million or More

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