The most controversial digital asset Bitcoin is rising to reach its record value since 2017, when it created a huge wave among investors and ended up in a rough spot in the following year.
Bitcoins, which are widely used as an alternative for national currencies like the dollar have shown a 2.6 percent increment to reach $18,092. In 2020, the digital currency has leaped into double its value, reminding the world of the 1,375 percent rally in 2017 that led up to a 70 percent decline in the following year.
Matt Maley, chief market strategist at asset management company Miller Tabak + Co. commented that, “this Bitcoin thing is crazy. It is the third parabolic move. God only knows where it’s going to top out.” However, both supporters and skeptics jointly opine that the digital currency may continue to go higher.
This surge in 2020 is followed by the Wall Street linchpins such as the Fidelity Investments that initiated the Bitcoin fund. Other leading money managers also promoted the cryptocurrency with macro investor Paul Tudor Jones buying the coin as a hedge against potential inflation and online payment providers PayPal Holdings’ enabling users to access the digital currency.
Even though many investors are still skeptical, the crypto advocates are looking forward to witnessing the Bitcoin touch 2017 record of $20,000 and some even expect higher levels.
“Bitcoin has consistently been one of the world’s top-performing assets since its creation. This latest surge comes as larger players enter the market sapping up what little supply remains for sale,” says the founder of market analysis firm Quantum Economics, Mati Greenspan.
The crypto supporters asserted that in the period of economic turbulence the Bitcoin can become a safe refuge as well a safeguard against the uncontrolled money printing by central banks. Speculators commented that the digital coin is up close to 150 percent in 2020 though it is still about 10 percent off its all-time high.
Even amid high crypto volatility, the institutional acceptance for it has been slow due to the frequent instances of hacking and theft. Early this month, the US Justice Department declared that it is taking action against the forfeiture of more than $1 billion in bitcoins which was connected to criminal activities. The Twitter accounts of some famous US political and business figures were also hacked earlier to promote a Bitcoin scam.
As per reliable sources, in 2020 Bitcoin has witnessed an average daily surge of 2.6 percent when compared with swings of 0.9 percent for the price of gold.
Hugo Rogers, the chief investment officer at Deltec Bank & Trust had bought Bitcoin in June 2020 and at that period it was traded around $9,300. Now the digital currency makes up about 5 percent of his Global Absolute Return Fund.
“A small position in Bitcoin can go a long way, there’s a lack of an alternative in real assets that can show a comparable return. If you’re going to diversify your portfolio anyway, this is a good place to go,” Mr. Rogers stated.