Bitcoin jumped to another all-time high on Wednesday as extreme changes continued to blow the world’s largest cryptocurrency.
The famous volatile digital currency advanced up 6% to $ 35,842, surpassing the previous high on January 3 and trading at $ 34,988 as of 6:47 a.m. in New York. It had fallen to 17% on Monday. Bitcoin quadrupled in 2020.
A number of factors have been cited for the rise of Bitcoin, which show how difficult it is to determine the imminent cause of the latest volatility attack. Some traders pointed to a long-term price of JPMorgan Chase & Co. a forecast of up to $ 146,000, while others cited the global risk status of global financial markets.
“It clears the bullish market and we won’t get drops from 30% to 40% like in 2017,” said Vijay Ayyar, head of business development with cryptocurrency exchange Luno in Singapore. “The market is more mature with larger buyers. Keep in mind, however, that we are in a parabolic phase and that they end up overcoming it. “
While recent price changes may be reminiscent of past boom cycles and upheavals, Bitcoin’s ability to reverse pace so quickly this week suggests that institutional investors shouldn’t leave the space, said Matt Long, head of distribution and main products with OSL cryptographic brokerage in Hong Kong.
“Monday’s fall was instructive as institutional investors seized the opportunity to buy,” he said. “Institutional investment is strong in the digital assets sector and is potentially accelerating.”
More institutions and pointed out investors, from Paul Tudor Jones to Scott Minerd and Stan Druckenmiller, have started allocating funds to Bitcoin or have said they are open to doing so.
“Chase Higher”
“The higher pursuit is again based on the idea that larger main street investors are interested in building long-term positions,” said Stephen Innes, Axi’s lead global market strategist. “It’s all about embracing the new era of blockchain technology to which Bitcoin is so uniquely intertwined.”
Some argue that cryptocurrency offers protection against the weakness of the dollar and the risk of inflation in a world flooded with fiscal and monetary stimuli.
“If inflation rises, or even if it doesn’t, and more companies decide to diversify a small portion of their cash balances into Bitcoin instead of cash, then the current relative drip into Bitcoin will become a torrent said Bill Miller of Miller Value Partners LLC wrote in a blog post publish.
But others say retail investors and funds as they follow the trend are accumulating an unsustainable bubble.
“Bitcoin is better to be gold than gold is to be gold,” said Anthony Scaramucci, founder and managing partner of SkyBridge Capital interview Tuesday. The company is the latest to get on the Bitcoin bandwagon and has launched a cryptocurrency fund this week.
Read more: Does Bitcoin Boom mean “better gold” or bigger bubble? QuickTake
– With the assistance of Matt Turner
(Updates with additional comments.)