/https://specials-images.forbesimg.com/imageserve/5fde3874191b56dd8377317f/0x0.jpg "As Bitcoin exceeds $ 25,000, see why this investor made the surprise decision to sell")
Bitcoin has surpassed the psychological level of $ 25,000, taking its December earnings to almost 50% as the 2020 bull run shows no signs of slowing down.
The price of bitcoin, after starting the year at around $ 7,000 per bitcoin, skyrocketed throughout the year, surpassing its 2017 historical record of around $ 20,000.
However, although the price of bitcoin continues to rise, the chief executive of the financial advisory group deVere, Nigel Green, revealed that he sold half of his holdings in bitcoin.
Bitcoin price is set to end 2020 almost three times higher than at the beginning of the year, exploding … [+]
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“I sold half of my holdings in bitcoin when it hit its all-time high,” said Green, who has been talking about bitcoin’s prospects for years, in an email statement. “Why? Because now it should be treated like any other investment – that is, when possible, it is better to sell high and buy it back later.”
Bitcoin selling pressure is expected to increase as the price goes up and investors try to reach the top of the market. With the price of bitcoin now up 250% over the past 12 months, profit-taking among longtime investors could drive the price down.
“Constant gains in the price of bitcoin have made digital currency the best performing asset in 2020, with an increase of more than 200%,” added Green. “As such, I thought it was the right time to make a profit.”
Green remains confident about bitcoin’s long-term performance, however.
“There should be no misunderstanding about my decision to sell. It is not due to a lack of belief in bitcoin or the concept of digital currencies – it is a profit making now to buy more later.”
Bitcoin’s profile soared along with its price this year, with the coronavirus pandemic and the subsequent wave of government spending putting it in stark contrast to fiat currencies.
As a result, bitcoin has attracted the attention of several renowned investors who view bitcoin as an emerging safe haven asset and protection against inflation.
British fund manager Ruffer Investment Management pushed bitcoin above the $ 20,000 price last week when it revealed that it bought $ 745 million in bitcoin, widely considered a sign of increased institutional interest.
As institutional investors and Wall Street giants “accumulate more and more in cryptography, bringing with them their enormous experience and capital, which in turn increases consumer interest,” Green thinks investors are increasingly will look to bitcoin as a hedge against “legitimate inflation concerns.”
The price of bitcoin has gone up 250% from eye-watering last year, this week breaking the … [+]
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Elsewhere, the bitcoin and cryptocurrency community is feeling optimistic in 2021, many feeling justified by bitcoin’s performance this year.
Earlier this week, Michael Novogratz, a former billionaire hedge fund turned bitcoin and a crypto investor, said he could see bitcoin hitting $ 50,000 next year – predicting that bitcoin will “eclipse gold” in the end.
Ray Dalio, the legendary billionaire founder and co-president of the world’s largest hedge fund, Bridgewater Associates, admitted this month that bitcoin has established itself as an “alternative to gold-like assets”.