After Surpassing $1 Trillion M-Cap, Bitcoin Continues Its Rally To Hit Record Of $58,354 On Sunday

Bitcoin extended its two-month rally that took its market capitalization above $1 trillion on Friday with gaining acceptance among mainstream investors and companies, such as Tesla Inc, Mastercard Inc, and BNY Mellon.

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Bitcoin, the world's most popular cryptocurrency, continued its rally on Sunday, rising to a new high of $58,354, gaining around 20% in the week and almost doubled since the start of 2021. 

Bitcoin extended its two-month rally that took its market capitalization above $1 trillion on Friday with gaining acceptance among mainstream investors and companies, such as Tesla Inc, Mastercard Inc, and BNY Mellon.

Tesla chief Elon Musk, the world's most prosperous with a personal wealth of $199 billion according to Bloomberg Billionaire Index, said Saturday that bitcoin and Ethereum prices "seem high" shortly after Bitcoin hit new records over $56,000 with more than $1 trillion of market capitalization. A couple of days ahead, Musk said on Thursday that owning bitcoin was just a little better than holding conventional cash, the marginal difference made it a better asset.

Musk Defends Investing In Bitcoins

Last week, Bitcoin reached a historic milestone on Tuesday, breaking the $50,000 mark for the first time in a dizzying rally, especially after Musk's electric vehicle company Tesla Inc. announced a $1.5 billion investment in cryptocurrency. However, Tesla's exposure to bitcoin fuelled talk about the risks and benefits of adding digital currencies to corporate balance sheets.

Musk defended Tesla's move to invest in Bitcoins. In a tweet, Musk said, "Tesla's action is not directly reflective of my opinion. Having some bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company." He also argued that owning bitcoin was just a little better than holding conventional cash, but the marginal difference made it a better asset.

Gaining Acceptance Among Mainstream Investors

Bitcoin sustained its rally above the $50,000 mark after MicroStrategy, the world's largest publicly traded business intelligence company announced that it would borrow $600 million to buy more Bitcoins.

Twitter CEO Jack Dorsey last week announced setting up a $24 million trust along with rap icon Jay-Z to make bitcoin "the internet's currency."

This month, America's oldest bank, BNY Mellon, announced the launch of a new digital custody unit this year to help clients deal with digital assets, including cryptocurrencies.

The announcement came a day after Mastercard announced that it would start supporting select cryptocurrencies directly on its network.