The price of Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization is seeing a massive correction after soaring above $61,000, representing a new all-time high for the cryptocurrency. According to data from CoinMarketCap, Bitcoin surged to $61,683.86 on March 13th, taking the surge picked up since the beginning of the year to a whole new height.
However, the market bears appear to have overpowered the bulls in a selling-off spree that has pared off the gains accrued over the weekend. At the time of writing, each Bitcoin is worth $56,929.66, up 5.77% in the past 24 hours. At a market capitalization of $1.057 trillion, the premier digital currency is 8.12% below the ATH.
Institutional Adoption Paying Off
The massive institutional embrace or backing of Bitcoin, a bullish beginning Bitcoin saw towards the end of the third quarter of 2020 is paying off going by the performance of the cryptocurrency when compared to the year-ago period.
In a successive bout of stack-ups, Nasdaq-listed firm, MicroStrategy Incorporated has acquired over 90,000 BTC at valuations exceeding $2 billion. Additionally, electric automaker, Tesla Inc threw its weight on Bitcoin back in February, investing as much as $1.5 billion into the cryptocurrency. Square Inc, a payment services outfit owned by Twitter CEO, Jack Dorsey also has an enormous amount of the cryptocurrency.
Besides the firms with direct ownership of the digital asset, others including Paypal are backing and promoting the mainstream adoption of the virtual currency by incorporating buying and selling of the coin in its app that is used by more than 200 million users across the globe. The effect of the mainstream adoption of Bitcoin is bound to soar from here, as many believe the entire cryptocurrency asset class is still young, with enough room for growth.
Bitcoin Price Forecast for The Year
Amid the ongoing bull run of BTC, the Chief Executive Officer of Diginex, a Hong Kong-based Digital Asset and financial services firm, Richard Byworth is projecting a $175,000 BTC price before the end of 2021.
Byworth backs his bullish call, drawing on the potential impact of the $1.9 trillion stimulus package from the United States of America. Part of the impact of the stimulus is likely to be monetary inflation, an occurrence that is bound to increase the rate at which corporate investors adopt Bitcoin as their hedge against inflation.