Bitcoin has set another milestone above $58,000, bringing the cryptocurrency’s year-to-date gain to over 100% in just less than two months in 2021. Over the past year, Bitcoin's price has risen by about 305%. The flagship cryptocurrency has been trading with an increasing price for the entire month of February. Analysts have speculated that Bitcoin’s serial all-time highs over the past several days has been mainly ignited by Tesla's announcement of investing $1.5 billion on the cryptocurrency this month.
The world’s largest cryptocurrency by market capitalization broke the resistance at $56,000 level while surpassing to a new all-time high over $58,000. In just one day, the cryptocurrency rose by almost $2,500 and gained almost 5% in value. Earlier last week, BTC’s extended two-month rally took its market capitalization to above $1 trillion. Bitcoin’s gains have been mostly fueled by its gaining acceptance among mainstream investors and companies, such as Tesla, Mastercard and BNY Mellon.
Earlier in February, Tesla announced an investment of $1.5 billion in Bitcoin. The electric car manufacturing company further announced on accepting BTC as payment for its cars and other products in the near future, prompting to more than 10% jump in the flagship cryptocurrency. The cryptocurrency has risen more than 90% since the start of January, pushing its total market value above $1 trillion.
Bitcoin, which is also known for its wild price swings, has seen sharp price drops since its creation in 2009. For instance, when BTC broke through the $40,000 mark in early January, it triggered a downward trend that saw its price drop down to around $30,000 by the end of the month.
Critics have also argued that Bitcoin is less of a currency and more of a speculative trading tool, open for market manipulation. However, since the cryptocurrency passed the $50,000 mark on Feb. 16, it has continued its upward momentum resulting in its recent break through $58,000.