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Bitcoin topped $50,000 for the first time Tuesday, doubling in value in less than two months.

The digital currency traded as high as $50,584.85, before closing at $48,642.45, according to CoinDesk, up 0.95% for the day and 68% for the year, with a total market value in circulation close to $909 billion.

The $50,000 level is an emotional level for people in the space, said Brian Melville, head of strategy at trading firm Cumberland. But it is also a simple result of supply and demand, he added.

From August through December, about 150,000 new bitcoins were minted, he estimated. The firm calculated that about 359,000 bitcoins were bought in the same period, and that imbalance has continued in 2021. Its a really important metric to watch, he added.

That buying demand has brought not only a price rally, but growing acceptance and recognition of an asset that was once an object of derision for regulators and lawmakers.

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Bitcoin Trades Above $50,000 for First Time - The Wall Street Journal