Yesterday, Bitcoin gained ground for the fifth consecutive day, advancing by 4.88% against the US dollar and closing the session at the $54,949.4 level. So far this week, the cryptocurrency has advanced by 10.23%, continuing a two-week gaining streak and recovering from previous losses.
Many attribute these recent gains to the optimism taking over the markets now that the US Senate approved a $1.9 trillion stimulus plan. Another factor that is aiding Bitcoin is the backing it has gotten from big financial players like Elon Musk, as well as institutional adoption.
A Chinese app maker called Meitu announced its decision to acquire Bitcoins, as well as other cryptocurrencies. Paypal announced it is buying Curv, a cryptocurrency security firm, while JP Morgan said in a recent report that traditional financial companies could fall behind in digital finance, announcing that it is willing to launch a Cryptocurrency Exposure Basket, which is long on 11 companies that are believed to be related to cryptocurrencies and other digital assets.
But not everyone is so enthusiastic regarding cryptos. Bill Gates attacked Bitcoin, claiming that it has a very high carbon footprint that is probably getting greater given the late preference of the markets for this asset.
"Bitcoin uses more electricity per transaction than any other method known to mankind,” warned Gates, adding that he is a Bitcoin skeptic and that "it’s not a great climate thing.”
Others have also questioned cryptocurrencies in the recent past, such as Treasury Secretary Janet Yellen and Nassim Taleb, who is known for coining the term "Black Swan".
Other cryptocurrencies joined Bitcoin and rallied yesterday. Ethereum rose by 1.99%, gaining for the fourth day in a row and closing at the 1,869.16 level, followed by Polkadot, which gained 9.22% during the session and closed at the 38.22230 level. On the other hand, Dogecoin lost 7.71%, breaking a three-day gaining streak and closing the session at the 0.058032 level.
Today, Bitcoin has paused its rally. By 7:05 GMT, it was at the 54,036.0 level, though having gained 0.19%. Some analysts expect Bitcoin to break the $60,000 level now that it has consolidated over the $50,000 level. However, market players should expect more volatility. Other cryptocurrencies may follow suit, as they seem to be highly correlated with Bitcoin's performance.