Bitcoin is heading for historic gains by the end of the week … here are the reasons

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Bitcoin hovered near record highs on Friday and is heading for gains of more than 20%, in a historic week during which it witnessed the support of large companies such as Tesla, owned by Elon Musk, while the weak US labor market continued to put pressure on the dollar.

The most popular cryptocurrency in the world fell in the latest transactions by 1.1% to reach 47,451 dollars, just below the record high of 49 thousand dollars, which is reached after the American banking group, BNY Mellon, said she established a unit to help clients maintain, convert and issue digital assets.

Tesla revealed that it had purchased $ 1.5 billion worth of digital currency, and BlackRock, the world’s largest asset manager, added bitcoin as an investment available for two funds.

The credit card giant Mastercard intends to provide support for some cryptocurrencies, which has boosted Bitcoin’s ambition to enter the usual financing path but many banks are reluctant to deal with it.

Analysts believe that the investment of the richest man in the world in Bitcoin will be considered a factor encouraging CEOs and heads of companies to track down Musk, which adds legitimacy to digital currencies and makes them compete with traditional currencies in the future.

Function numbers
The price of Bitcoin has risen more than 61.4% since the beginning of this year, up from 28.8 thousand dollars per unit at the conclusion of the 2020 sessions.

As of Thursday morning, the number of traded units of the most famous virtual currency in the global market reached 18.624 million units out of 21 million, which is the total number of units available for sale and circulation.

The number of encrypted digital currencies worldwide reached about 4493, with a market value of more than 1.380 trillion dollars, as of last Wednesday morning, with Bitcoin acquiring the largest share of them, by 62.6%, at a value of 890 billion dollars.

The digital currency, Ethereum, ranked second in terms of market value at 201.89 billion dollars, followed by Tether with 29.8 billion, and Cardano-ADA with 21.8 billion.

Investors find in virtual currencies a feasible investment tool after the decline in gold prices and the dollar, which has formed a safe haven for dealers over the past nine months, fearing the Coronavirus’s consequences.

Loss of the dollar
On the other hand, the dollar is heading towards its first weekly loss in 3 weeks in light of indications of the US job market’s weakness, which negatively affects expectations about the pace of the economy’s recovery from the pandemic.

In early European trade, the dollar index rose 0.15% to 90.55 after weak volumes in Asia due to the Lunar New Year. The index is heading towards a 0.5% decline at the end of weekly trading.

The dollar rose slightly against the yen, to 104.940. The euro also fell 0.17% to $ 1.2115, to consolidate for the third day near that level while heading to achieve 0.5% gains at the end of weekly trading.

The single currency stabilized against the pound sterling at 0.876, after official data showed that Britain’s economy, hit by the Coronavirus pandemic, fell 9.9% in 2020, in the largest annual collapse in more than 300 years, but avoided a return to recession at the end of last year.