It just takes 39 days for the largest cryptocurrency to rocket to $50,000 from $40,000, mainly fueled by Tesla who recently signaled its confidence in Bitcoin. Thanks to Tesla’s $1.5 billion investment, as well as its intention to accept Bitcoin as a form of payment, more investors have rushed into the asset, and many traditional industries intend to add it to their balance sheets.
Similar to gold, Bitcoin, with a limited supply, is also regarded as a safe-haven asset. The coin was launched just over a decade ago, while gold has been the number one safe-haven asset for hundreds of years. However, people in this industry generally have high hopes that it can compete with gold in the future.
As central banks around the world injected billions of liquidity into markets, mainstream institutional investors are looking to allocate their funds towards the new safe-haven asset, which will further strengthen Bitcoin’s status as “digital gold”.
Despite that, investors need to be aware of trading risks since the crypto market has been historically quite volatile.