The price of Bitcoin surpassed $60,000 for the first time in history over the weekend. And later exceeded $61,000 to set a new all-time high of $61,556.59.
The move passed the previous record of around $58,330 set on Feb. 21. Bitcoin now holds a market cap of $1.14 trillion, which isn’t far behind Google, who owns a market cap of $1.385 trillion.
The latest rally came just two days after U.S. President Joe Biden signed a massive $1.9 trillion stimulus bill into law. The program will distribute $1,400 checks to millions of Americans and additional financial aid to small businesses.
When the previous two stimulus bills were passed, the cryptocurrency market surged to new highs. Many Americans took the opportunity to invest in the likes of Bitcoin and Ether, helping them set record prices.
Analysts are expecting a similar outcome this time around as well. That’s despite U.S. Treasury yields climbing back to over 12-month highs in the wake of the fresh stimulus.
Also helping Bitcoin’s price reach new highs is a rise in institutional interest. Chinese internet firm Meitu recently purchased nearly $18 million worth of the leading cryptocurrency. The beauty app also bought just over $22 million worth of Ether.
“Institutional investment continues to build momentum with Chinese internet firm Meitu. The latest to execute a Bitcoin treasury strategy.” Said Jehan Chu, co-founder and managing partner of Kenetic.
He added: “Further, Beeple’s $69 milllion NFT record demonstrates the true power of crypto. Adding curiosity and fuel to the retail fire. Expect volatility but a landing of $100k levels by Q3.”
Other major companies to invest in Bitcoin since the start of the new year include Tesla, MicroStrategy and Square.
Bitcoin price sees slight correction; drops below $60,000
After surging past $61,000 on Saturday, Bitcoin has pared some of its gains. At press time, it was trading at $56,258.19, which marked a 7% drop from the previous day.