(Reuters) – Bitcoin surged above USD 60,000 to approach weekend record highs, breaking out of a tight two-week range and being propelled by talk of limited new supplies against evidence of wider adoption.
The largest and best-known cryptocurrency in the world hit $ 61,222.22 on Saturday, the highest level in nearly a month. It was slightly lower at $ 59,907 at 5:00 a.m. GMT on Sunday.
Bitcoin (BTC) is up 116% from its low of $ 27,734 in the year on Jan 4. It first crossed the $ 60,000 mark on March 13, hitting a record $ 61,781.83 on Bitstamp Exchange, just after US President Joe Biden signed his $ 1.9 trillion. tax incentive package converted into legislation.
Justin d’Anethan, sales manager at Hong Kong-based digital asset company Diginex, said investors had turned their attention to stock markets and other cryptocurrencies in recent weeks, leaving Bitcoin inactive in the top $ 50,000 levels.
“That changed yesterday when we went through 60K. With miners not selling recently minted coins, stock exchange reserves hitting multi-year lows, and a never-ending stream of companies, funds, investors large and small piling up in BTC, we have gone through the roof, ”he said.
Bitcoin’s staggering gains this year are due to its widespread adoption as an investment and currency, accompanied by the rush of retail money for stocks, exchange-traded funds, and other risky assets.
It surged this year as major companies such as BNY Mellon, asset manager BlackRock Inc, credit card giant Mastercard Inc, backed cryptocurrencies, while companies such as Tesla Inc Square Inc and MicroStrategy Inc invested in bitcoin.
Major US banks such as Morgan Stanley are also trying to provide asset management clients with access to bitcoin funds.
Reporting by Aakriti Bhalla in Bengaluru and Vidya Ranganathan in Singapore; Editing by William Mallard