Cryptocurrency mining hardware.
Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Bitcoin, the largest cryptocurrency in the world, exceeded $ 30,000 for the first time, just weeks after passing another major milestone.
The currency gained almost 9% on Saturday, to exceed $ 31,800, before falling slightly below that price. It advanced almost 50% in December, when it violated $ 20,000 for the first time.
The latest earnings outweigh A eye-popping demonstration for the controversial digital asset in 2020, which recovered dramatically after a serious accident in March that saw it lose 25% amid the coronavirus pandemic.
The coin “will be on its way to $ 50,000 probably in the first quarter of 2021,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which presents itself as the largest cryptocurrency in the world. Institutional investors returning to their desks this week are likely to further raise prices after retail shopping during the holiday, he said.
Bitcoin has increasingly been “adopted into more global investment portfolios as holders go beyond tech geeks and speculators,” Bloomberg Intelligence commodities strategist Mike McGlone wrote in a note last month. Proponents of the currency have also clung to the narrative that the currency could act as a depository of wealth amid the supposedly unbridled impression of money by the central bank, even though inflation remains almost always low.
Bitcoin is expected to rise to around $ 400,000, Scott Minerd, chief investment officer at Guggenheim Investments, told Bloomberg Television on December 16 interview.
Still, there are reasons for caution, in part because Bitcoin remains a poorly traded market. The coin fell by 14% on November 26 amid warnings that the asset class was behind in a correction. The big price increase in 2017 was followed by a year-long 83% loss.
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(Updates prices in the second paragraph, comment in the fourth and fifth paragraphs and context in the eighth paragraph)