The price of bitcoin hit a record high above $52,000 on Wednesday, with a market capitalization nearing $1 trillion.
Bitcoin (BTC) was trading around $52,231.69 as of 21:00 UTC (4 p.m. ET). Gaining 7.16% over the previous 24 hours Bitcoin’s 24-hour range: $48,430.80-$52,536.47
The price has rocketed by about 78% in 2021, continuing an astonishing rally after dipping below $4,000 last year in March. Its market capitalization has grown by more than $700 billion since the end of September.
In February, Tesla’s announcement that it had invested $1.5 billion worth of bitcoin has powered the latest rise in the digital currency. Interest from big Wall Street names such as BlackRock, BNY Mellon, and Mastercard has also given cryptocurrencies legitimacy.
Analyst View on the Performance of Bitcoin
Analysts at JP Morgan said on Tuesday that the high volatility remained a problem for the digital asset saying bitcoin was far more volatile than gold, which many crypto investors are hoping bitcoin can replace as a store of value in investors’ portfolios.
“In our opinion, unless bitcoin volatility subsides quickly from here, its current price looks unsustainable,” the analysts said.
JPMorgan also said that its analysis found that the rapid rise in the cryptocurrency over the past five months had “taken place with relatively little institutional flows.”
“Some pickup in real money flows would likely be needed to sustain current prices in the absence of a re-acceleration of the retail flow,” the note said.