| Bitcoin surpasses $50,000 for the first time ever

| Bitcoin surpasses $50,000 for the first time ever

Large companies are investing massively in cryptography, when banking and financial groups are increasingly interested in it.

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Feb 16, 2021 at 2:59pm.
| updated at 15:00
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The price of Bitcoin crossed the $50,000 mark on Tuesday, a first for the ever-record breaking cryptoney industry, galvanized by the interest of major banks and corporations like Tesla.

At around 12:35 GMT (13:35 in Paris), Bitcoin rose to an all-time high of $50,547.70. It then fell back to cost around 12:55 GMT $49,505.35, an increase of 2.7% over the session and more than 70% since the beginning of the year.

A volatile market

A volatile market

After a dizzying performance in 2020, bitcoin has seen its value increase fivefold in the last year. But while some market observers are wary of the volatility of this decentralized, asset-less market, others believe that the situation is very different from 2017, when prices had climbed with the same enthusiasm before crashing in early 2018.

« Increasing business interest in cryptomoney has transformed the market compared to 2017, » said Neil Wilson, analyst at Markets.com.

Last week, electric car maker Tesla created a surprise by announcing that it had invested $1.5 billion of its cash in Bitcoin. Tesla’s boss and the world’s richest man, Elon Musk, doesn’t hesitate to extol the merits of cryptomoney on social networks.

New projects on cryptomoney

New projects on cryptomoney

On Tuesday, the MicroStrategy Group, a mid-size US software company that in late 2020 made a massive investment in Bitcoin, to allow Wall Street investors to bet on cryptography by buying their shares, announced a $600 million fund raising « to buy Bitcoin ».

In addition, banking and financial groups are increasingly interested in Bitcoin: the oldest bank on Wall Street, BNY Mellon and MasterCard succeeded last week the giant BlackRock or the payment service Paypal, all of which have announced new projects on cryptosystems in recent months.

However, there is no unanimity on the cryptomoney market: several central bankers, such as Andrew Bailey in the United Kingdom, have ruled out the idea of considering Bitcoin as a currency in its own right, or even as « digital gold » to be used to preserve wealth.

| Bitcoin surpasses $50,000 for the first time ever
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