Bitcoin rose above US$50,000 on Tuesday to a new record high, building on a rally fuelled by signs that the world’s biggest cryptocurrency is gaining acceptance amongst mainstream investors.

FILE PHOTO: Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes
FILE PHOTO: Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration

LONDON: Bitcoin rose above US$50,000 on Tuesday to a new record high, building on a rally fuelled by signs that the world’s biggest cryptocurrency is gaining acceptance amongst mainstream investors.

Bitcoin hit a new high of US$50,602, and was last up 5per cent at US$50,300. It has risen around 72per cent so far this year, with most of the gains coming after electric carmaker Tesla said it had bought US$1.5 billion in bitcoin.

It also said it would accept the currency as payment.

But Tesla was only the latest in a string of large investments that have vaulted bitcoin from the fringes of finance to company balance sheets and Wall Street dealing desks, as U.S. firms and traditional money managers have started to buy a lot of it.

(Reporting by Thyagaraju Adinarayan, additional reportnig by Tom Westbrook; editing by Sujata Rao)

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