GUANGZHOU, China – Bitcoin hit $ 37,700 to set a new record on Thursday, helping to raise the total value of the entire cryptocurrency market above $ 1 trillion for the first time.
The digital currency hit an all-time high of $ 37,739.08 around 13:44 Singapore time, just hours after passing $ 36,000, according to Coindesk data.
Bitcoin was up 5% from the previous day around 14:42 Singapore time.
Cryptocurrency has increased by approximately 29% since the beginning of 2021 and has increased by more than 380% in the last 12 months.
Meanwhile, the value of the entire cryptocurrency market, which is made up of bitcoins and other digital currencies such as ether and tether, topped $ 1 trillion for the first time on Thursday early Thursday, according to Coinmarketcap data.
The resurgence of Bitcoin has been attributed to several factors, including the purchases of large institutional investors. High-profile investors like Paul Tudor Jones, for example, have been buying bitcoins.
Many bitcoin bugs say the cryptocurrency is similar to digital gold, with an active potential for safe haven and hedging against inflation. In a recent research note, JPMorgan said Bitcoin could reach $ 146,000 in the long run as it competes with gold as an “alternative” currency. Investment bank strategists noted that Bitcoin should be substantially less volatile to reach that price. Bitcoin is known for wild price changes.
The idea of bitcoin as a hedge against inflation has continued to gain momentum as governments around the world embark on large-scale fiscal stimulus programs. Analysts argue that this could lead to rising inflation.
“This latest run in January is sure to attract the attention of asset managers to further diversify their cryptocurrency assets, as they are willing to find alternative investments, such as cryptocurrency or gold, to cover inflation and geopolitical risks. “Simons Chen, chief investment and trading director of cryptocurrency financial services company Babel Finance, told CNBC.
“A large number of retail investors have also joined the race recently as they fear missing out on opportunities to make easy and quick gains from the last race,” he added.
But some bitcoin critics, such as Rosenberg Research economist and strategist David Rosenberg, have called bitcoin a bubble.
“The parabolic movement of Bitcoin in such a short period of time, I would say for any security, is highly abnormal,” Rosenberg told CNBC earlier this month.