Hardware for extracting cryptocurrencies.
Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Bitcoin, the world’s largest cryptocurrency, topped $ 30,000 for the first time in just a few weeks after another major milestone.
The currency gained nearly 9% on Saturday to exceed $ 31,800, before falling slightly below that price. It advanced nearly 50 percent in December, when it first raised $ 20,000.
The latest top year earnings impressive rally for the controversial digital asset in 2020, which suddenly returned after a severe accident in March, which saw a 25% loss amid the coronavirus pandemic.
The currency “will be on its way to $ 50,000, probably in the first quarter of 2021,” said Antoni Trenchev, general partner and co-founder of Nexo in London, which is considered the world’s largest cryptocurrency borrower. Institutional investors returning to the offices this week are likely to raise prices after the holiday purchase during the holidays, he said.
Bitcoin has been increasingly “embraced in more global investment portfolios as holders expand beyond technology experts and speculators,” Bloomberg intelligence services strategist Mike McGlone wrote in a statement. last month. Proponents of the currency also took advantage of the narrative that the currency could act as a wealth deposit in the midst of the central bank’s alleged printing of money, even if inflation remains largely off.
Bitcoin should eventually rise to about $ 400,000, Scott Minerd, chief investment officer of Guggenheim Investments, told Bloomberg Television on Dec. 16. interview.
However, there are reasons to be cautious, in part, because Bitcoin remains a thin traded market. Currency decreased by up to 14% on November 26, amid warnings that the asset class exceeded a correction. The big price increase in 2017 was followed by an 83% route that lasted a year.
Read more: Does Bitcoin Boom mean “better gold” or bigger bubbles? QuickTake
(Update prices in the second paragraph, comment in the fourth and fifth paragraphs and the context in the eighth paragraph)