With just three days into the New Year, Bitcoin has passed established a historic high by passing the crucial $30,000 mark. The digital currency gained 7.8 per cent to $34,182.75, before slipping to about $33,970 on Sunday. It had passed almost 50 per cent in December, when it crossed the $20,000 mark for the first time.
Antoni Trenchev, managing partner and co-founder of Nexo, told Bloomberg that the currency “will be on the road to $50,000 probably in the first quarter of 2021. He said institutional investors returning to their desks this week will likely boost prices further by retail buying over the holidays. Mike McGlone, Bloomberg Intelligence Commodity strategist, had last month said that Bitcoin has increasingly been embraced in more global investment portfolios as holders expand beyond tech geeks and speculators.
Sergey Nazarov, co-founder of Chinalink, said its very likely that the asset will eventually pass $100,000 per coin. “People have been steadily losing faith in their government currencies for years, and the monetary policies resulting from the economic impact of the coronavirus have only accelerated this decline.”
Bitcoin’s high comes after investors having accepted it as a potential asset. Experts believe proponents of the currency have also seized on the narrative that the coin could act as a store of wealth amid supposed rampant central bank money printing, even as inflation remains mostly muted. “Bitcoin could compete more intensely with gold as an alternative currency over the coming years given that millennials will become over time a more important component of investors’ universe,” analysts said.
Investors believe limited supply of the renowned cryptocurrency, produced by mining computers that validate blocks of transactions by competing to solve mathematical puzzles, has helped power upward moves over recent days.
The cryptocurrency has emerged as an attractive option for investors with an appetite for the exotic. The blockchain currency, as per CNBC, has only been around for a decade or so, and in 2020 it has seen demand grow from larger US investors, attracted by its perceived inflation-hedging qualities and potential for quick gains, as well as expectations it would become a mainstream payments method.