- Bitcoin crossed $50,000 for the first time this week. It also hit a market cap of $1 trillion today.
- The rate of institutional adoption in Bitcoin means that it still claims the spotlight over other smaller cryptocurrencies, a trend that will likely continue through 2021.
- With DeFi growing, Crypto Briefing explains why readers should consider participating in governance voting.
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Bitcoin hit $50,000 this week, nine weeks after crossing $20,000 for the first time.
Institutional Adoption Picks Up Pace
A wave of mainstream interest in Bitcoin has helped fuel its biggest run to date. According to JP Morgan analysts, speculative “retail impulse” could be the main driving force behind the run. That, they concluded, could be an indicator that a correction is coming.
However, it’s difficult to ignore the vast corporate adoption rate the asset has received through 2020 and 2021.
This week, MicroStrategy announced its plans to invest over $600 million worth of convertible debt into Bitcoin, adding to the firm’s already massive BTC balance sheet. The announcement led to a slight dip in MicroStrategy shares but lent major buy-side sentiment in the crypto markets, with Bitcoin hitting a record $50,000 minutes after the announcement.
Corporate and institutional adoption has played a major role in the bull run, making it distinct from the ICO frenzy of 2017. In addition to MicroStrategy, which has arguably led the wave of institutional interest, major firms like Tesla and $2 trillion banking giant BNY Mellon have announced moves towards adopting Bitcoin in the last few weeks.
Tesla’s announcement of a $1.5 billion investment, along with the move to add Bitcoin as a payment option for its vehicles, added to positive sentiment in the market.
Earlier this month, the market received the news that Visa is piloting software to allow crypto trading at U.S. banks. The constant flurry of announcements from major companies has left…