This last Saturday (13), bitcoin (BTC) broke another price record. The cryptocurrency topped $ 61,000 for the first time in history. Again, the appreciation is the result of movements by the growing institutional investors that are pressing the supply of digital currency. However, as is usual after a new maximum is reached, the crypto also plunged with the high volume of sales this Monday (15).
23% appreciation over the course of a week
Bitcoin opened last Monday at $ 50,000. However, on an upward ladder, the price of crypto went through a gradual appreciation over the days to then reach a new record on Saturday (13). According to the index CoinDesk, the cryptocurrency was worth $ 61,556, remaining stable and above $ 60,000 over the entire weekend.
Bitcoin falls more than 10% after record
However, market corrections generally keep up with bitcoin price records. On Monday (15), the cryptocurrency recorded a sharp drop in the face of high sales volume. Today the asset has reached a low of $ 54,790 and has so far shown slight signs of recovery.
The sudden downturns are natural after bitcoin has registered a new historic high. This has been happening noticeably since December 2020, when the cryptocurrency began to break its 2017 price records. Whenever the digital asset reached a new milestone, investors saw a good opportunity for immediate profit and sales were taking place in droves.
Bitcoin price doubles in 2021
Starting from a simplified logic, bitcoin has its price established mainly by the supply and demand of the market. The cryptocurrency has a limited stock, currently 18.6 million units. In 2021, large institutions decided to invest billions of dollars in assets, such as Tesla, MicroStrategy and others, tightening their supply and increasing their demand.
Naturally, the price of bitcoin continued to skyrocket. With the new record this weekend, the cryptocurrency has finally crossed the line of 100% appreciation throughout this year. On the first day of January, the digital currency was worth $ 29,600.
New record comes after institutional purchases
Again, the price of bitcoin was driven by demand from large companies that chose to invest in crypto. Currently, allocating part of corporate funds in cryptocurrencies is a way that several institutions have adopted to protect themselves from inflation and devaluation of fiat currencies.
This time, more companies from around the world revealed million-dollar acquisitions in crypto. For example, Meitu, a Hong Kong software and data processing company, last week announced the purchase of $ 22 million in ether (ETH) and $ 17.9 million in bitcoin (BTC).
Another large Norwegian company, Aker ASA, announced the creation of a branch dedicated to investments in bitcoin and other crypto. Called Seetee, his initial move was the acquisition of $ 58.3 million in bitcoin last week.
The more corporations turn to the cryptocurrency market, the greater the credibility that this growing sector has among retail investors who already number millions of individuals around the world. PayPal’s entry in October 2020 was the trigger for companies like Tesla to buy billions of dollars in bitcoin this year. With the endorsement of these institutions and multiple and influential public figures like Elon Musk, digital currencies have never dominated the news so much.