Bitcoin climbs back above $55,000 as rally extends into 4th day

Bitcoin

Bitcoin climbed for the fourth straight day on Wednesday, flirting with the record high set in February amid continued support from major institutions.

The digital asset traded as high as $US57,258 ($74,293) Wednesday afternoon. It is on track for a second straight weekly gain after falling from a high of over $US58,000 ($75,256) last month.

The move once again pushed bitcoin past the $US1 ($1) trillion market capitalization threshold, a milestone first hit on February 19. The cryptocurrency thus far has skyrocketed 600% year-to-date amid divided opinion on whether it’s set to become an institutional asset class or is a speculative bubble waiting to burst.

The world’s most popular cryptocurrency has been enjoying a steady climb, buoyed by speculation that the third round of stimulus checks expected to land on President Joe Biden’s desk in the next days will not only inject liquidity into equities but also cryptocurrencies.

As discussions of more economic stimulus leading to higher inflation heat up, bitcoin bulls are becoming more confident in the asset as a hedge against a weaker dollar.