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| Bitcoin sets a record before the historic Coinbase listing |
Bitcoin hit a record high of $ 62,741 on Tuesday and continued to rise in 2021, reaching the second day of Coinbase's listing on the Nasdaq exchange.
America's largest cryptocurrency platform was listed on the Nasdaq on Wednesday, a historic victory for cryptocurrency supporters.
Bitcoin is the largest cryptocurrency in the world. Given its growing acceptance as an investment and payment method, Bitcoin continued to rally as the currency rose 5% on Tuesday.
According to data tracking and market data from CoinGecko and Blockfolio, the total market cap of cryptocurrencies hit a record $ 2 trillion earlier this month.
Several large companies, including BNY Mellon, Mastercard, and Tesla have accepted or have invested in cryptocurrencies.
As of last month, Bitcoin has surpassed $ 60,000 on its balance sheet due to Tesla's purchase of $ 1.5 billion in digital currency.
When Bitcoin crosses a new high and reaches a new high, the price typically trades in a certain range and we see a number of difficulties in profit, said James Butterville, investment strategist at CoinShares, a digital asset management company.
“We have recently witnessed a similar round of profit taking that appears to be over now,” he added.
Simon Peters, an analyst at eToro investment platform, said, “As institutions increasingly withdraw large amounts of Bitcoin and Ethereum from the internet and move their owners to their own wallets, the demand for institutions increases.
"There is only one result as investors expect lower levels as the year progresses," he added.
Investors' attempts to source high-yielding assets at low interest rates have also fueled a diversified recovery in cryptocurrencies.
However, only five years ago, Bitcoin transactions reached hundreds of dollars, prompting major investment banks to warn of speculative bubbles.
Several fund managers at Bank of America and Deutsche Bank indicated that Bitcoin is in the realm of a bubble and is expected to decline sharply.