Bitcoin surge above $50,000 for the first time as major companies invest in digital currency

Bitcoin hit a new record surging above $50,000, expanding on its record rally as the world's largest cryptocurrency to captivate investors worldwide.

Bitcoin reached a new high of $50,602 and was last up by five percent at $50,300. So far this year, it has risen by about 72 percent, with most of the gains coming from electric car producer Tesla when it purchased $1.5 billion in bitcoin and would accept digital currency for the payments of the car.

Interest from major financial corporations, including BNY Mellon and Mastercard, has continued to boost the rally by contributing to the asset credibility.

Last week Bank of New York Mellon said a new unit is created to support consumers' hold, transfer, and issue bitcoins in near future.

In January, JPMorgan said that bitcoin has emerged as a gold competitor and could trade as high as $146,000 if it is identified as a safe-haven asset. After years as a play for investors and retail punters, that could mark a new dawn for the digital currency, Reuters reported.

Other coins, such as ether, the cryptocurrency on the Ethereum network, have also been helpful. Since touching a record high of $1,870 over the weekend, its price was nearly flat on Tuesday, at $1,793.

As buyers gradually buy and 'hodl' the currency for the long run, the liquid supply of Bitcoin tends to fall. ‘Hodl is crypto slang, for the act of an investor holding the asset instead of selling it, reported Reuters.