Bitcoin’s price broke through the $50,000 threshold Tuesday and peaking at over $51,800 after conventional North American markets closed.
“(Tuesday’s) close will be highly important for the future path,” said London-based AvaTrade chief market analyst Naeem Aslam in a tweet, noting Bitcoin hit the $50,000 mark for the first time in four weeks.
Other cryptocurrencies also rise
Bitcoin’s bulge coincided with upward movement from other cryptocurrencies, including Ethereum. Meme token Shiba Inu’s spiked more than 27% after Tesla founder Elon Musk posted a picture of his puppy on Twitter. The dog’s breed bears the same name as the token.
Investors may have been reacting to deVere Group founder and CEO Nigel Green’s recent prediction that Bitcoin could reach $100,000 by the end of 2021. He upped his forecast from $65,000.
In a recent blog post, Green attributed the heightened outlook to a few key factors, including:
- US Federal Reserve chair Jerome Powell’s recent pledge not to ban cryptocurrencies
- mounting interest from institutional investors
- “mega influencers” like Musk, Twitter CEO Jack Dorsey, and Ark Investment CEO Cathie Wood
- Bitcoin and other cryptocurrencies altering the way the world handles money.
“Investors appreciate the intrinsic value of digital, borderless, global currencies for trade and commerce purposes in increasingly digitised economies in which businesses operate in more than one jurisdiction,” Green wrote.
“This (appreciation) will only increase as mass global adoption increases,” he wrote
El Salvador’s adoption of Bitcoin as legal tender in September will only increase its global use, he wrote. Bitcoin’s momentum will also boost other major digital assets, such as Ethereum and Cardano.
“After its recent mini price dip, Bitcoin came back with a bang, and there’s very little reason to think it won’t continue this uptick and surpass past record highs,” Green wrote.