On Tuesday, Bitcoin reached $50,000 for the first time. The cryptocurrency’s value has doubled in less than two months as the total market value of the bitcoins in circulation hits $940 billion. The digital currency was traded as high as $50,203.53 this morning, up 4.2% and more than 73% for the year. The statistics are making headlines just a week after Elon Musk, founder of Tesla, announced that he had invested $1.9 billion in the cryptocurrency.
Between August and December of 2020, roughly 150,000 new bitcoins were minted. Trading firm Cumberland estimates that roughly 359,000 bitcoins were bought within the same period, creating an imbalance that has lasted into 2021. This supply and demand dynamic are what’s making the cryptocurrency so successful, according to the head of strategy at Cumberland Brian Melville.
Read More: Bitcoin Trades Above $50,000 for First Time
