Bitcoin’s price broke above $50,000 for the first time in history Tuesday, continuing its blistering rally as major companies appear to be warming to cryptocurrencies.
The world’s largest digital currency by market value rose more than 3% to an all-time high of $50,487 U.S. early Tuesday morning, according to data from Coin Metrics. It later fell below the mark, trading 0.6% higher at a price of $48,952.
Bitcoin has gotten a boost from news of large firms like Tesla (NASDAQ: TSLA) and Mastercard (NYSE:MA) showing support for crypto. Tesla last week revealed it had bought $1.5 billion worth of bitcoin and plans to accept the digital coin as payment for its products, while Mastercard said it will open up its network to some digital currencies. PayPal (NASDAQ:PYPL) and BNY Mellon (NYSE:BK) have also made big moves to support crypto.
Bitcoin skyrocketed to nearly $20,000 U.S. in late 2017 before losing more than 80% of its value the following year. Bitcoin believers say that, whereas the 2017 bubble was driven by retail speculation, the current cycle is being fueled by demand from institutional investors.
