Bitcoin price hits new high! Bitcoin price hits a fresh high above $23,000 on Thursday, extending a rally that has astonished investors. With this new high, Bitcoin has more than tripled in value this year.
Bitcoin surged 12% to $23,421 according to Coin Metrics. This is one day after smashing through $20,000 the day previous – Bitcoin settled at around $22,787 by 7:30am ET.
Crypto bulls have pointed to increased demand from institutional investors, pitching Bitcoin as a hedge against inflation amidst unprecedented central banking spending due to the Coronavirus. A recent JPMorgan note claimed that investor appetite would boost inflows into funds tracking Bitcoin to the detriment of Gold.
Bitcoin’s 2020 performance has reminded many market watchers of its frenzied rally to nearly $20,000 back in 2017 – the crypto winter that followed has some worried, but many are claiming that a similar Crypto Winter in 2021 is unlikely due to the 2020 rally being driven by mostly institutional buying as opposed to retail speculation as it was in 2017.
Well-known investors like Paul Tudor Jones and Stanley Druckenmiller have come out as believers in Bitcoin this year. Companies like PayPal and Fidelity have made moves into the crypto space as well – with some companies like Square and MicroStrategy using their own balance sheets to buy Bitcoin.
Skeptics continue to see Bitcoin as a speculative asset with no intrinsic value, with noted billionaire Warren Buffett rebuffing cryptocurrency and Bitcoin by saying that trading in digital currency is more akin to gambling.
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