In the longest rally since its inception, Bitcoin passed the $52,000 mark for the first time in its history. The cryptocurrency was hovering at around $52,100 in Asian Trading on Thursday; marking yet another high during its fivefold surge this year.
The largest existing cryptocurrency, Bitcoin’s surge was spurred on by Tesla’s decision to purchase $1.5 billion worth of the crypto. MicroStrategy Inc. made its own Bitcoin purchase to the value of $900 million.
Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, commented that MicroStrategy’s step is “a warning sign if there ever was one that things are getting out of hand in the crypto world.”
Nicholas Pelecanos, head of trading at NEM, was one of several experts who disagreed with Halley’s assessment. He claimed that Bitcoin’s rally has mostly positive implications, specifically referring to Tesla’s and MicroStrategy’s major moves. In his own words, Pelecanos praised this decision of “moving institutional balance sheets into Bitcoin to hedge against inflation.”
Still, JPMorgan Chase & Co. strategists have warned that Bitcoin’s volatility needs to be eased if it is to prevent its rally from eventually falling apart.
While still below the boom experienced three years ago, Bitcoin’s 60-day realized volatility is its highest since May of last year.
