Bitcoin tops $57,000 as US passes $1.9 tn COVID-19 relief package

New York: Bitcoin prices crossed $57,000 level for the first time in 17 days on Thursday after the US House of Representatives passed a covid-19 stimulus package worth $1.9 trillion.

The world’s largest digital asset rose as much as 5.2 per cent before trading around $57,000 as of 12:23 p.m. in New York. It passed $1 trillion for the first time in February on its way to a record high of $58,350.

According to global cryptocurrency exchange, Kraken, Bitcoin flow was evenly split between buyers and sellers, though flow in both directions was uneventful and indicative of market participants remaining off on the sidelines.

The gain comes even as a key measure of U.S. consumer prices rose less than expected in February, suggesting broader inflationary pressures remain tame. Bitcoin proponents have championed the digital asset as a hedge against a future surge in inflation.

While the $1 trillion mark is noteworthy, the argument has been made that assigning a market capitalization isn’t an accurate representation since Bitcoin isn’t a company or even an asset. Skeptics say without real-world assets that companies possess or government backing like the dollar, all investors are really buying into is faith in the cryptocurrency’s network.

Meanwhile, the world’s second biggest cryptocurrency, Ethereum traded at $1,785.10, down 1.6%. The digital asset is around 13% from than its lifetime high of $2,043.