Bitcoin’s price reached a new record high of almost $ 50,000 on Sunday, as major Fortune 500 companies showed support for digital currencies.
The world’s largest cryptocurrency by market value surged more than 5% to an all-time high of $ 49,716 Sunday afternoon, according to data from industry website CoinDesk.
The digital asset reversed course Monday, sinking 2.4% in the last 24 hours to a price of around $ 47,925.
Tesla revealed it had bought $ 1.5 billion worth of bitcoin in a filing last week and said it would soon accept payments in the digital coin.
Bitcoin’s price more than quadrupled in 2020 and is up more than 60% since the start of this year. Bulls say it’s down to heightened demand from institutional investors and a perception of the digital coin as a store of value similar to gold. But bears worry bitcoin may be one of the biggest market bubbles in history.