Bitcoin has crossed the $50,000 barrier for the first time on the back of surging demand for the so-called crypto king among mainstream investors.

The cryptocurrency, which has endured wild swings in its value during a chequered 12-year history, struck a record high above $50,100 on Tuesday, according to the CEX.IO exchange.

The milestone was reached as traditional jitters over its legitimacy are cast aside through growing demand among corporate and institutional investors.

🔥 #Bitcoin has hit $50,000!
Learn more at https://t.co/JIKWilu6C0 pic.twitter.com/KEXoUJJZep

The clamour for a piece of the action has seen its value surge by more than 70% this year alone.

The buying trend was set just over a fortnight ago when Elon Musk’s Tesla said it had invested $1.5bn (£1.09bn) in Bitcoin and would soon start accepting it as a form of payment for its cars and other products.

Since then, Mastercard, PayPal and even some investment banks have publicly supported crypto assets and exchanges have reported a surge in purchases from dealing desks.

Naeem Aslam, chief market analyst at Bitcoin broker AvaTrade, said: “Institutions are all over it.

“There is a lot of FOMO (fear of missing out) among traders as price is going through the roof and we have limited supply.”

He argued that the currency’s history of wild fluctuations in value was more likely to be curbed as a result of the new investors.

“Given the fact that billionaire, US corporate, and institutional clients are supporting the current rally, the Bitcoin volatility has tamed to a larger extent.

“The next target, once the price moves about 50K, is really the 65K.”

Global regulators, including central banks, continue to urge a cautious approach to cryptocurrency trading given a lack of oversight.

In the UK, for example, the Financial Conduct Authority only has regulatory powers over Bitcoin in two areas: terrorist financing and money laundering.

However, mainstream market involvement in Bitcoin bolsters pressure on the authorities to create a framework as the currency finds itself on the books of companies that come under their regulatory remits.

Related posts:

BoE governor: Climate risks ‘not reflected in market prices of most financial assets’ Ted Baker puts brave face on pandemic sales slump COVID roadmap delay, online car auctions and the rise in restaurant meal kits Average UK house price surges by 10% and nears record high Black Friday boost expected as anxious shoppers stock up early for Christmas Pandemic not in ‘rear view mirror’ for hospitality sector, pubs boss tells PM UK growth slows as GDP edges closer to pre-pandemic levels Frozen turkeys in short supply (but beer stocks are excellent), industry data shows Are you in line for a cut to your bill? Water company performance penalties are revealed Labour shortages: which jobs are seeing the biggest rise in demand? ‘Chicken King’ seeks £50m in funding amid supply chain crisis One million adults in UK went entire day without food last month