Bitcoin Tops $60,000 For a Second Time Ever to Kick Off the Month

Bitcoin Tops $60,000 For a Second Time Ever to Kick Off the Month

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Key Takeaways

• Bitcoin overtakes the $60,000 mark, underpinned by positive expectations for the quarter
• Crypto market capitalization zooms in on $2tn as mainstream acceptance continues to grow

Bitcoin enjoyed strong buying momentum in the early Friday hours as investors pushed the asset’s price over $60,000 for the second time in history. The milestone, which took 18 days to reclaim, comes after a new wave of mainstream adoption has increased confidence in the crypto space.

On Friday, the price reached $60,200 per bitcoin, almost a three-week high. Price has eased off its session highs but remains well bid and is trading around $59,800. The renewed upward swing the market witnessed in the last couple of weeks brought with it the backing of more mainstream financial institutions, payment processors, and increased investments by businesses and corporations. Over the month of March, bitcoin gained 30% and with it, PayPal and Visa announced they now accept cryptocurrencies as a legitimate means of payment. Users of their networks are now able to pay for goods using crypto, which, in the process, converts into fiat currencies with no additional charge.

Meanwhile, Goldman Sachs, JPMorgan and Morgan Stanley are only some of the banks that are looking for ways to allow their clients to invest in bitcoin and the broad cryptocurrency market. Increased client demand has prompted investment banks to create cryptocurrency products and allow access to the emerging market.

The first quarter ended on a highly positive note for bitcoin and the overall crypto space. Over the course of the first three months of 2021, bitcoin advanced 103% and, along the way, it witnessed the strongest mainstream adoption in its history. One of the most prominent signs of acceptance during the first trimester was Tesla’s announcement to purchase $1.5tn worth of bitcoin. The news provided a strong boost to bitcoin and have since helped buoy the asset’s valuation as more traditional mainstays piled onto the crypto wagon. Following Tesla’s bitcoin bet, the EV maker announced in March that US clients can now pay for its electric cars with bitcoin.

The emerging asset class is expected to receive more institutional support this quarter as it is now too big to ignore and the demand continues to accelerate as bitcoin continues to grow both in valuation and in popularity.

April Kicks-Off Crypto Gains

The crypto market kicked off April with a fresh move to the upside as the total market capitalization reached a historical high of $1.99tn. Bitcoin’s dominance has been trickling down to the rest of the cryptocurrencies and now the number one coin holds less than 58% market share, indicating traders and investors are diversifying by looking into other crypto assets, not just bitcoin. In early January, the largest digital asset owned 70% of the market.

Ethereum, the second-largest coin, also posts solid gains so far for April. It has been on the rise for five straight days and is closing in on its all-time high of $2,040. Ethereum is now trading at roughly $2,000, less than 2% from its record high.