Bitcoin’s price exceeded $50,000 for the first time ever. Compared to the beginning of the year, this is a result of an increase of 74% in just two months. This year’s record bull market is being created by a joint venture between US IT and financial companies. Recently, news that large companies in the IT and financial industries are showing interest in bitcoin has driven the price increase.
According to CoinMarketCap, a cryptocurrency information site, the price of 1 bitcoin surpassed 50,000 dollars (about 55 million won) around 9:40 pm on the 16th in Korea time. It fell slightly after touching $50,000, and is trading at the $49,200 level as of the morning of the 17th.
This year, Bitcoin is going through a terrifying rally. What was traded at $28,800 in January of this year soared 74% in just two months.
In particular, the recent bull market has been led by Tesla and Wall Street financial companies pouring fuel.
Electric car maker Tesla reported to the SEC earlier this month that it had bought $1.5 billion worth of bitcoin in January, and said it is also considering ways to receive bitcoin and sell Tesla electric cars in the future. When the news came out, the price of Bitcoin at the time soared more than 13% to $43,000.
Since then, there has been news that traditional Wall Street financial companies are trying to treat Bitcoin as a financial product.
New York Melon, the oldest financial institution in the United States, announced on the 11th that it plans to deal with bitcoin for its asset management customers. One day earlier, MasterCard announced that it will support payment services using cryptocurrency within the year. On the 14th, a Bloomberg report reported that Morgan Stanley, an investment bank in the United States, is considering offering bitcoin investment products through its subsidiary. The bitcoin trading market responded to the atmosphere of traditional financial companies accepting bitcoin, leading to a touch of 50,000 dollars.
In the United States, more and more companies and institutional investors are actively investing in bitcoin, mainly tech companies, and an atmosphere where financial companies treat bitcoin as a financial product to respond to such investment demand is forming.
Bitcoin-friendly tech companies see holding bitcoins rather than cash as a way to increase the company’s profits.
Tesla announced the news of the purchase of bitcoin and said, “We have updated our investment policy to flexibly diversify and maximize profits for cash holdings excluding liquidity required for operation.” I invested in bitcoin,” he explained.
MicroStrategy, an American analytics software company that has been buying bitcoins since the second half of last year, said, “This investment reflects our belief that bitcoin is a reliable store of value and an attractive investment asset with the potential to increase value over cash reserves in the long term “I will.”
On the 16th, MicroStrategy also announced plans to purchase additional bitcoins by issuing $600 million in corporate bonds. The company already holds 72,000 bitcoins (worth $3.6 billion).
As companies and institutions showed interest in bitcoin as an alternative investment asset, Wall Street’s traditional financial companies couldn’t stand still.
Grayscale, a digital currency investment firm that actively accommodates the demand for bitcoin investments from companies and institutions, operates a $31 billion bitcoin trust product.
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Bloomberg shared the news of Morgan Stanley’s review of Bitcoin investments. He also added an interpretation of “There is.”
JPMorgan’s CEO Daniel Pinto predicted in an interview with CNBC on the 12th that “there is no demand (for Bitcoin investment) yet, but we are confident that demand will occur at some point.”