Tech

Bitcoin (BTC) price hits record highs above $ 23,000

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Bitcoin surged 12% on Thursday, hitting a record high of over $ 23,000, expanding the fierce rebound of cryptocurrencies, which were more than tripled in value this year.

According to crypto market data provider CoinMetrics, the world’s most valuable digital currencies last traded at $ 23,421, with year-to-date profits of over 200%. Bitcoin only broke through $ 20,000 on Wednesday.

Cryptocurrency bulls have pointed to increased demand from institutional investors, touting Bitcoin as a hedge against gold-like inflation in the unprecedented US coronavirus stimulus. A recent JP Morgan memo argued that the appetite of such investors would boost the influx of Bitcoin-tracking funds and sacrifice gold.

On Tuesday, UK asset manager Ruffer revealed that about 2.5% of its portfolio is invested in Bitcoin “as a small but strong insurance policy against the ongoing devaluation of the world’s major currencies.” .. By the end of November, the company had managed £ 20.3 billion ($ 27.6 billion) in assets.

Bitcoin’s 2020 performance reminded many market watchers of a frenzied rise to nearly $ 20,000 in 2017, followed by a sharp setback the following year. However, crypto fans argue that this year’s rally is different from 2017 because it is driven by institutional purchases rather than retail speculation.

This year, well-known investors such as Paul Tudor Jones and Stanley Druckenmiller have emerged as Bitcoin followers, and major financial companies such as PayPal and Fidelity are also moving in this area. Meanwhile, Square, MicroStrategy and others use their own balance sheets to buy Bitcoin.

On Wednesday, Guggenheim Investments Chief Investment Officer Scott Minard set a Bitcoin price target of $ 400,000 because of Bitcoin’s rarity and relative valuation of assets such as gold. .. However, it’s worth noting that some investors made lofty calls about Bitcoin prices in 2017, but eventually didn’t happen in 2017.

Scholars see Bitcoin as a speculative asset of no intrinsic value, and investors like billionaire Berkshire Hathaway CEO Warren Buffett say trading in digital currencies is like gambling. Stated.

Bitcoin (BTC) price hits record highs above $ 23,000

Source link Bitcoin (BTC) price hits record highs above $ 23,000

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