In this photo illustration, a visual representation of the digital cryptocurrency, Bitcoin can be seen before the Bitcoin price chart on February 9, 2021 in Paris, France.
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Bitcoin’s value surpassed $ 1 trillion on Tuesday as the cryptocurrency’s price jumped.
The price of the digital currency surged Tuesday and its market cap topped $ 1 trillion in Singapore by mid-morning, according to CoinDesk.
Bitcoin expanded on those gains, reaching a 24-hour high of $ 54,029.85 at around 11:35 a.m. Singapore time, up about 7% from the same time the day before. Bitcoin has since diminished some of those gains.
It is only the second time that bitcoin’s value has surpassed $ 1 trillion after reaching that milestone for the first time on Feb. 19. Bitcoin’s market cap stayed above $ 1 trillion for a few days before falling below that level.
While bitcoin is down from its all-time high of $ 58,332.36, it has seen a massive rally. The digital currency is up more than 80% this year and is up 570% in the last 12 months.
Bitcoin’s rally has been attributed to a variety of factors, including participation from larger institutional investors and some notable corporate purchases. Tesla, Square and Microstrategy are among the companies that bought bitcoin.
On Sunday, a Chinese app maker called Meitu said it had bought not only bitcoin, but another cryptocurrency called ether. Ether, a cryptocurrency running on the Ethereum network, traded at around 10:41 a.m. Singapore time for $ 1,836.73, up almost 7% from the day before, according to CoinDesk.
Companies are also making acquisitions in the cryptocurrency space. PayPal said Monday it will buy cryptocurrency security firm Curv.
Bitcoin advocates often liken it to “digital gold,” an inflation hedge and potential “safe haven” assets where investors can park their money in times of political or economic turmoil.
Some argue that loose monetary policies, such as low interest rates and asset purchases by central banks around the world, offer the value of fiat currencies such as the US dollar and bitcoin a better alternative to invest in.