Bitcoin hits record high before landmark Coinbase listing

LONDON: Bitcoin hit a record of US$62,741 on Tuesday (Apr 13), extending its 2021 rally to new heights a day before Coinbase's share listing in the United States.

The largest US cryptocurrency exchange's listing on the Nasdaq on Wednesday is considered a landmark victory for cryptocurrency advocates.

The world's biggest cryptocurrency, which has growing mainstream acceptance as an investment and a means of payment, rose as much as 5 per cent on Tuesday. Smaller rival Ethereum also reached a record high of US$2,205.

Major firms including BNY Mellon, Mastercard Inc and Tesla Inc are among those to have embraced or invested in cryptocurrencies.

READ: As Tesla takes the plunge, wary insurers watch crypto craze from the sidelines

Bitcoin topped US$60,000 early last month, fuelled by Tesla's move to buy US$1.5 billion of the digital currency for its balance sheet. For the past two weeks, it had traded in a tight range.

"When bitcoin markets create new highs the price often range-trades and we witness a round of profit-taking," said James Butterfill of digital asset manager CoinShares.

READ: India to propose cryptocurrency ban, penalising miners, traders: Source

"During this most recent period have witnessed a similar profit-taking round, which now looks to have run its course."

The multi-fold rise in cryptocurrencies is also driven by investors seeking high-yielding assets amid low interest rates.