The incredible current rally of Bitcoin doesn’t show signs of stopping as the King of Crypto reached $51,000 for the first time.
The coin grew by close to 6% today and topped a new level of $51,431. This follows a fivefold surge during 2020.
“Bitcoin’s rally for some is emblematic of speculative froth in financial markets awash with stimulus. The crypto faithful counter that the digital asset is grabbing more mainstream attention, especially after Tesla Inc.’s recent US$1.5 billion purchase.” – BNN Bloomberg.
Yesterday, MicroStrategy has declared that it plans to sell $600 million of convertible bonds with the proceeds going to acquiring more tokens.
MicroStrategy’s step is “a warning sign if there ever was one that things are getting out of hand in the crypto world,” declared Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte.
Of course, not everybody agrees:
“There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularised: moving institutional balance sheets into Bitcoin to hedge against inflation,” commented Nicholas Pelecanos, head of trading at NEM.
All of this implies that traders don’t think the crypto rally would have a sudden end.