Bitcoin: Cryptocurrency surges by over five percent
Bitcoin’s price has increased by more than five percent over the past 24 hours, according to cryptocurrency website Coin Desk.
The price of Bitcoin plummeted by 25 percent in March as the early financial impacts of the coronavirus pandemic were beginning to be felt.
But the world’s most popular cryptocurrency, whose price has suffered wild fluctuations in the past, has enjoyed a stellar few months as it continues its path to becoming a mainstream payment method.
It has gained more than 170 percent this year, pushed by demand from larger investors attracted to its potential for quick gains and purported resistance to rising inflation.
This is also the second major milestone for Bitcoin over recent weeks having reached a new high at the end of November.
Cryptocurrency experts have hailed the recent price surge, and have predicted it could act as a launchpad for Bitcoin’s value to surge even further.
Antoni Trenchev, co-founder and managing partner of cryptocurrency lender Nexo, said: “We have a new line in the sand and the focus shifts to the next round number of $30,000.”
The price of Bitcoin has surged past the $20,000 barrier for the first time
Bitcoin’s price surged to a historic high at the end of Nvember
“The is the start of a new chapter for Bitcoin.
“It’s a narrative the media and retail crowd can properly latch onto because they’ve been noticeably absent from this rally.”
Ayush Ansal, CEO of the hedge fund, Crimson Black Capital, said: “After being in a wasteland since the infamous bull run of late 2017, crypto, and Bitcoin in particular, are back.
“Bitcoin has been threatening the symbolic $20,000 barrier for some time and finally it has broken through.
Bitcoin’s price has continued to surge over recent months
“Public interest in cryptocurrencies will be reignited over the Christmas period, as people start to believe in Bitcoin all over again.
“The Covid-19 pandemic has almost certainly contributed to the rebound in Bitcoin. It has changed the order of things and that resonates with many investors right now.
“The resurgence of Bitcoin will once again have Central Banks on red alert.
“If they become truly mainstream, Bitcoin and other cryptocurrencies represent an existential threat to the entire banking system.”
Ed Campbell, portfolio manager and managing director at QMA, said: “People tend to pile into momentum trades, so Bitcoin could have more upside from here.”
Bitcoin is the world’s most popular form of cryptocurrency
Danny Scott, chief executive of Isle of Man-based bitcoin and cryptocurrency exchange CoinCorner, told Forbes: “As we come to the end of what has been an iconic year for bitcoin, I can only see more positive growth in 2021.
“Compared to 2017 when demand came from the retail market, this will eventually happen again.
“Of course, the current demand is coming from an institutional level completely flying under the radar for many people and it looks set to continue through 2021.”
Bitcoin’s surge has seen a spoke in the amount of the cryptocurrency moving into North America and East Asia, and has become popular with bigger and compliance-wary US investors.
Several investors, particularly hedge funds and family offices, have historically avoided Bitcoin because of the opaque nature of the cryptocurrency market.
But the use of cryptocurrency has become an increasingly trustworthy form of payment due, especially since a tightening of the industry in the US.
Bitcoin’s popularity has increased as it looks to become a mainstream form of payment
Last week, fund manager Ruffer Investment Management moved around $675 million of its clients’ money into Bitcoin, according to a report from Reuters.
MicroStrategy, which provides business intelligence, mobile software, and cloud-based services, has already bought some $500million of Bitcoin so far this year.
Recently, the firm raised a further $650million via a bond sale to buy more of the popular cryptocurrency.
But some Bitcoin traders have issued a warning to anyone thinking of rushing into buying Bitcoin.
Financial author and trading veteran Glen Goodman told Forbes: “History has a warning for people buying at the new all-time-high.
“While I’m optimistic about the long-term prospects for Bitcoin, four years ago we had a very similar situation with bitcoin breaking new ground, but just two weeks later its price plummeted by more than a third.
“History doesn’t always repeat itself, of course, but the lesson is to be on your guard.
“The market often teaches harsh lessons in humility to those who risk too much on what they’re told is a sure thing.
“Some of the biggest investors in the world have been singing Bitcoin’s praises in recent weeks.
“This suggests they already own bitcoin and are hoping to encourage more people to buy and boost the price upwards.
“Sometimes Wall Street ‘whales’ do this in order to sell their Bitcoins to the little guys at higher prices.”
This is a breaking story. More to follow…