Bitcoin has started gaining strength in recent weeks as it has crossed $50,000 mark for the first time since May 2021.
In terms of market value, the world's largest cryptocurrency climbed 4.6 percent to $53,859.6. On Tuesday, it surpassed $50,000 for the first time in four weeks, owing to increased institutional interest.
During a major selloff in cryptocurrency and blockchain-related stocks in early September, bitcoin went below $50,000. In September, it dropped even more, reaching a low of $40,596 on September 21.
Bitcoin and Tesla:
For the time being, Bitcoin's rise has resulted in a paper windfall for the two CEOs who have bet the most on the cryptocurrency: Tesla's Elon Musk and MicroStrategy's Michael Saylor. Bitcoin soared 36 percent in seven days to $54,600 at mid-afternoon on October 6, its highest level since May 12, after languishing at just over $40,000 the week before following China's latest trade ban.
Tesla's 42,000 coins had increased in value by $630 million, giving it a total gain of $830 million, or more than 85% of its pre-tax earnings in the first two quarters of 2021. The unrealized earnings on MicroStrategy's 109,000 Bitcoin portfolio increased over $1.5 billion.
Tesla's holdings were underwater when Bitcoin briefly fell below $30,000 in late June, and MicroStrategy's gains went from lavish to meagre. The two crypto-crusaders then appeared to be acting rashly. The success of Musk and Saylor's gambit now proves that companies should ignore the wild ride and board the train, according to Bitcoin believers.
Other Cryptocurrency updates:
Smaller coins, which tend to move in lockstep with bitcoin, were also on the rise. Ether gained 2.2 percent to $3,594, while XRP gained 0.2 percent to $1.0865.
Ben McMillan, chief investment officer at IDX Digital Assets, a factor-based crypto index strategy, he is seeing a steady rise in the number of new bitcoin addresses, following a huge drop-off in the first half of the year, as well as an increasing number of bitcoin moving off exchange.
According to Forbes the recent price changes are because of some bank activities, various experts offered their opinions on what fueled the cryptocurrency's recent rise.
“Becaue of investor demand, more banks are joining on the crypto bandwagon. Bank of America began research coverage of cryptocurrencies and other digital assets, and U.S. Bancorp launched a cryptocurrency custody service for institutional investment managers."
Why CEO of Pepsi isn't going to buy Bitcoin??
Hugh Johnston, CFO of PepsiCo. He expressed how top management at America's largest companies views Bitcoin in a CNBC interview on October 5th. When asked by anchor Joe Kernen if PepsiCo would consider buying coins for its treasury, Johnston said that while he would "never say never," it would be "an awful long time" before the company considered the option because Bitcoin is "too volatile and speculative." PepsiCo's two top priorities for corporate cash, according to Johnston, are "safety and liquidity," implying that Bitcoin provides neither.
So, if you're thinking about investing in Bitcoin or another cryptocurrency, do your homework first.
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