Bitcoin broke through the $60,000 mark to set a record high of $61,923 on March 13, according to data from Messari. This surpassed the cryptocurrency’s previous high of $58,355 recorded on Feb. 21.
Bitcoin has rallied strongly since its February record and subsequent decline. It fell as much as 25%, scraping $43,000 in the days following that peak.
The oldest cryptocurrency tested the $50,000 mark in early March, and broke through decisively on March 7. It surged, facing brief resistance at $58,000 before crossing the $60,000 threshold.
Bitcoin’s record-setting run comes as the Biden administration signed a mammoth $1.9 trillion stimulus package into law. Among other measures, the package will see around 150 million Americans receive $1,400 deposited directly to their bank accounts.
The expected stimulus could well fuel new Bitcoin purchases, analysts say. The so-called stimulus checks began hitting some bank accounts as early as last weekend, CNBC reported.
“We believe there is a good chance that at least some of this money will find its way to the flagship cryptocurrency—or perhaps even other altcoins,” Jason Deane, an analyst at Quantum Economics told Decrypt.
The monetary-easing measures will stoke fears of inflation among some long-term investors, leading to an increase in demand for deflationary assets like Bitcoin, analysts say.
“This high-inflationary backdrop will likely push many long term investors, especially institutions like pension and insurance funds … to invest in assets that are not exposed to inflationary pressures—such as cryptocurrencies,” the chief executive officer of CF Benchmarks, a cryptocurrency index provider, Sui Chung, told Decrypt.
Bitcoin’s latest peak price accorded it a “market capitalization,” or the value of all Bitcoin in circulation, of $1.14 trillion. If Bitcoin were a company, it would be ranked above Facebook and Tesla, which are valued at around $770 billion, but below five other companies: Alphabet, Amazon, Microsoft, Saudi Aramco and Apple.
The iPhone maker’s current market capitalization is $2 trillion. Bitcoin would have to hit a price of around $100,000, depending on the circulating supply at the time, to be worth more than Apple.