Bitcoin price is trading above $50,000 for the first time since May 15, after several months of heavy fluctuations. Bitcoin prices saw an increase from the start of the year driven mainly by retail investors’ enthusiasm, who were placing bets on the positive effect of more U.S. stimulus spending on bitcoin prices.

Bitcoin hit its all-time high in April, reaching $65,000, but plunging to $28,800 in June driven by China’s escalation of its crackdown on cryptos and Tesla’s announcement, according to which it won’t accept bitcoin as payment for its electric vehicles.

Prices started to climb again last month after several big companies signaled their support of cryptocurrencies.

Below we have outlined several major drivers for the surge in bitcoin prices:

Bullish comments from Tesla and Twitter chief executives Elon Musk and Jack Dorsey, who shared their plans of incorporating digital currencies in their business operations.
A speculation of the possibility that Amazon is preparing to accept cryptos as a payment for goods.
Coinbase’s announcement, according to which it is purchasing $500 million worth of cryptocurrencies and is planning to allocate 10% of its profits for buying cryptos.
PayPal’s announcement to give users in UK a possibility to buy, hold and sell bitcoin, ethereum, litecoin and bitcoin cash.

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Published at 2021-08-27 22:06:00

By Davit Kirakosyan

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