Money & Banking

Bitcoin hits record high before landmark Coinbase IPO

Reuters London April 13 | Updated on April 13, 2021

World's biggest cryptocurrency rose 5 per cent on Tuesday to set a record of $62,741

Bitcoin hit a recordof $62,741 on Tuesday, extending its 2021 rally to new heights a day ahead of Coinbase's initial public offering.

The largest US cryptocurrency exchange's listing on the Nasdaq on Wednesday is considered a landmark victory for cryptocurrency advocates.

The world's biggest cryptocurrency, which has growing mainstream acceptance as an investment and a means of payment, rose as much as 5 per cent on Tuesday. Smaller rival Ethereum also reached a record high of $2,205.

Major firms including BNY Mellon, Mastercard Inc and Tesla Inc are among those to have embraced or invested in cryptocurrencies.

Bitcoin topped $60,000 early last month, fuelled by Tesla's move to buy $1.5 billion of the digital currency for its balance sheet. For the past two weeks, it had traded in a tight range.

"When bitcoin markets create new highs the price often range-trades and we witness a round of profit-taking," saidJames Butterfill of digital asset manager CoinShares.

"During this most recent period have witnessed a similarprofit-taking round, which now looks to have run its course."

The multi-fold rise in cryptocurrencies is also driven byinvestors seeking high-yielding assets amid low interest rates.

Published on April 13, 2021

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