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BTC Price Breaks Historical Record of $50,000

February 16, 2021 at 13:35 by Mark Stevenson

The leading cryptocurrency in terms of capitalization, Bitcoin (BTC) has crossed the $50,000 mark on Tuesday, February 16, setting a new record in the digital currency market.

The highest price was noted on the BitMEX exchange, where Bitcoin reached a value of $50,980. The market capitalization of Bitcoin alone surpassed the level of $930 billion. The total cryptocurrency market capitalization has grown to $1.5 trillion.

However, almost immediately after overcoming the maximum, BTC experienced a minute drawdown to $48,451. At the time of this writing, the price of BTC/USD is $49,800.

MicroStrategy announcement behind Bitcoin rally

It is believed that the announcement that MicroStrategy, a US-listed company listed on Nasdaq and famous for holding a large amount of Bitcoin, issued a convertible bond of $600 million dollars triggered the Bitcoin rally above $50k.

The convertible bonds are targeted at qualified institutional investors and will mature in February 2027. The company plans to offer purchase options up to a total principal of $90 million and mentions additional purchases of Bitcoin based on the funds raised.

In December of last year, MicroStrategy also purchased Bitcoin for $650 million raised by selling convertible bonds in order to purchase additional BTC.

On January 22, the company made another purchase of $10 million worth of bitcoins, and 295 BTC additional purchases on February 2. Together with the purchase last year, it holds a total of 71,079 BTC as reserve assets.

The Bitcoin market has been booming lately due to the large-scale purchase of Bitcoin by Tesla, a major electric vehicle company, and the announcement that Mastercard will support cryptocurrencies in 2021.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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