The most popular crypto asset, Bitcoin, was trading at $46,596.4, up 20.10% on the day. It was the biggest daily percentage gain since December 7, 2017.
Such an alarming surge pushed Bitcoin’s market value up to $848 billion, or 63.38% of the total crypto market value. Bitcoin has been trading between $38,057.0 and $46,596.4 for the day.
Over the past week, the flagship crypto has seen a rise in value by 35.32%.
READ: Bitcoin posts highest monthly transfers ever
What you must know: The price of Bitcoin has been on record high since the world’s most valuable car company, Tesla disclosed that it bought about $1.5billion of the crypto asset in January and expected to start accepting it as a form of payment in the future.
- Tesla said it was trying to maximize returns on cash that was not being used in the day-to-day running of the company.
- The fast-rising American electric car manufacturer further disclosed that it made the bet on Bitcoin after updating its investment policy last month to allow Tesla to invest in digital assets, as well as gold bullion and gold exchange-traded funds.
READ: Bitcoin running out of steam
Also pushing Bitcoin’s value up is a macro revealing that Bitcoin’s market liquidity is tightening, as there are less than 4 million BTCs in circulation available for upcoming investors, including the likes of Paypal, Square, hedge funds, and so on.
According to Yann & Jan:
“Float in the network is drying up faster than ever.
“Currently, about 78% of issued bitcoin’s are either lost or being hodled, leaving less than 4 million bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc).”
Float in the network is drying up faster than ever.
Currently about 78% of issued $bitcoin’s are either lost or being hodled, leaving less than 4M bitcoins to be shared amongst future market entrants (incl. Paypal, Square, SP500 Companies, ETF’s, etc). pic.twitter.com/hCtEqQOEEl
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) February 5, 2021