On Tuesday, Bitcoin reached a new high of $62,741, extending its 2021 run to new heights a day before Coinbase’s IPO in the United States. The Nasdaq listing of the largest U.S. cryptocurrency exchange on Wednesday is regarded as a watershed moment for cryptocurrency advocates. On Tuesday, the world’s largest cryptocurrency, which is gaining widespread acceptance as an investment and a means of payment, increased by as much as 5%. Ethereum, a smaller competitor, has hit a new high of $2,205. BNY Mellon (BK. N), Mastercard Inc (MA. N), and Tesla Inc (TSLA.O) are only a few of the major companies that have adopted or invested in cryptocurrencies. Early last month, Bitcoin surpassed $60,000, boosted by Tesla’s decision to purchase $1.5 billion in the digital currency for its balance sheet. It had been trading in a narrow range for the previous two weeks. “When bitcoin prices reach new milestones, the price always range-trades, and we see a round of profit-taking,” according to James Butterfill of digital asset manager Coin Shares. “We’ve seen a similar profit-taking round in the most recent era, which now appears to have run its course.” Investors seeking high-yielding assets despite low-interest rates are also driving the multi-fold increase in cryptocurrency.
