Bitcoin raised $ 50,000 for the first time Tuesday, doubling in value in less than two months.
Digital currency traded as high as $ 50,203.53, up 4.2% for the day and more than 73% for the year. The total market value of bitcoin in circulation rose to $ 940 billion.
The $ 50,000 level is “an emotional level for people in space,” said Brian Melville, head of strategy at trading company Cumberland. But it is also a simple result of supply and demand, he said.
From August through December, about 150,000 new bitcoins were mined, he estimated. The company estimated that about 359,000 bitcoins were bought in the same period, and that imbalance has continued into 2021. “It’s an important metric to watch,” he said.
That purchase demand has led to not only price accumulation, but growing acceptance and recognition of assets that were once a source of frustration for regulators and lawyers.