Bitcoin on Tuesday surpassed $50,000 for the first time as institutional investors and businesses fuel a historic rally that has lifted the digital currency more than 70 percent this year.
The largest cryptocurrency by market value, bitcoin peaked at $50,584.85, before pulling back. That’s more than double its price from the trading frenzy in late 2017, when bitcoin burst onto the broader public scene and seized widespread attention. It dropped down to $48,656 by late afternoon.
The cryptocurrency’s record climb comes as many large-asset management companies have begun recommending the asset, pulling bitcoin further into the financial mainstream. Its total market value exceeds $906 billion.
Even as the coronavirus has battered the U.S. economy, financial markets continue to swell. The three major U.S. stock indexes set record highs last week and were trading near those levels Tuesday as investors monitored news of President Biden’s proposed $1.9 trillion aid package and the national vaccine rollout.
The S&P 500 retreated slightly from Friday’s record close, dipping
0.06 percent, or 2.24 points, to 3,932.59. It’s still up nearly 5 percent for
the year. The Dow Jones industrial average inched up 64.35 points, or 0.2
percent, to a record 31,522.75. The tech-heavy Nasdaq sank 47.97 points, or more
than 0.3 percent, to end at 14,047.50.