- Bitcoin soared to an all-time above $63,000 on Tuesday, ahead of Coinbase’s direct listing.
- Stimulus and institutional interest is driving the cryptocurrency higher, analysts say.
- Year-to-date gains have topped 110%, with bitcoin up more than 800% in 12 months.
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Bitcoin soared to an all-time high above $63,000 on Tuesday, taking year-to-date gains to more than 110%, as excitement around cryptocurrencies continued to grow ahead of crypto exchange Coinbase’s direct listing on the Nasdaq.
The world’s biggest cryptocurrency rose as much as 5.3% to hit $63,179, well above the last all-time high of just over $61,700 seen in March. It then pared gains slightly to trade at around $62,543 at 6.30 a.m. ET.
Huge amounts of stimulus from both central banks and governments have powered bitcoin’s meteoric rise, analysts say, which has seen the cryptocurrency soar more than 800% over the last year.
But commentators said the latest leg higher appeared to be largely driven by the direct listing of crypto exchange Coinbase on the Nasdaq, which is set to take place on Wednesday.
It would be the biggest listing of a crypto company yet, with Coinbase pulling in about $1.8 billion in revenue in the first quarter of 2021. The exchange said in March that private-market transactions valued it at about $68 billion.
“Bitcoin’s rally today is likely driven by the commotion around the Coinbase listing,” said Ben Caselin, head of strategy at cryptocurrency options exchange AAX.
“However, after consolidating around the $55,000 level for over a month, bitcoin’s upswing has also been a long time coming.”
In recent months, adoption by a growing number of big players has added legitimacy to bitcoin and the crypto world and helped drive the price higher.
Tesla, BNY Mellon, Mastercard, BlackRock and JPMorgan are just some of the companies that are getting involved in cryptocurrencies one way or another.
Matt Blom, head of sales at Nasdaq-listed digital asset company Diginex, said that “$70,000 is the new target for the bulls.” He added: “Every month this year has so far registered a new all-time high.”