Bitcoin price above 50,000 USD mark – Now it’s really getting started
Bitcoin price above 50,000 USD mark – Now things are really starting to happen
It happened: The Bitcoin price has crossed the magic threshold of 50,000 US dollars. Thus, the leading cryptocurrency crossed the psychologically important mark on Tuesday afternoon, 16 February at shortly after 1 pm – a 24-hour increase of 5 percent. Bitcoin’s market Bitcoin Future capitalisation thus stands at around 920 billion US dollars and is only 8 percent away from the one-trillion-USD mark. Which reasons speak for the current Bitcoin strength.
After a somewhat disorienting week, the bitcoin price was able to set off on a record run at 1 pm today and reached its new all-time high of just under 50,500 US dollars only half an hour later.
The company Microstrategy, or rather its CEO Michael Saylor, is probably responsible for this rapid rise. The business intelligence company, which has already invested large parts of its cash reserves in Bitcoin since the summer of 2020, is planning to issue promissory notes with a total value of 600 million US dollars. The convertible senior notes can only be purchased by institutional investors and will expire on 15 February 2027, unless the company buys them back in advance. MicroStrategy had already issued convertible notes with a volume of 550 million US dollars in December last year and invested the funding volume in Bitcoin. The proceeds from the new promissory note will also be used to buy BTC, according to the press release.
Coverboy Elon Musk
That being said, the public attention on Bitcoin couldn’t be greater at the moment. Bitcoin is making it onto the front pages of leading financial newspapers such as the Financial Times, among others. In its Saturday edition (13 February), for example, the Financial Times printed a picture of Elon Musk and a Bitcoin coin on the cover. Included was the question: „Is bitcoin going mainstream?“
The answer to this question is probably a resounding YES. This applies not only to small investors, but increasingly also to institutional players. Thus, the cover image also featured the logo of the oldest bank in the US: BNY Mellon. The investment house manages almost 2 trillion US dollars in client assets and is thus one of the most influential financial players. This week, it announced its intention to offer Bitcoin services such as purchase and custody to its customers before the end of the year.
Wall Street elite gives direction
However, BNY Mellon is not alone in this. The world’s largest asset manager, Blackrock, has also recently submitted applications to the US securities regulator to be allowed to hold cryptocurrencies in its funds. With 8.6 trillion US dollars in assets under management, the investment giant wields enormous market power.
If the Wall Street elite invests in Bitcoin, this is both an accolade and a clear sign: more billions are likely to flow into the crypto market in the coming weeks and months. Watching what the so-called smart money is doing is in most cases a smart idea to know in which direction something is developing. Many investors are likely to feel confirmed by this positive news and allocate more money to Bitcoin. So it remains exciting to see which big players will follow and commit to Bitcoin in the coming weeks.