Bitcoin jumped to another overall high on Wednesday when extreme swings continued to buffer the world’s largest cryptocurrency.
The famous volatile digital currency rose 6% to $ 35,842, surpassing the previous high of January 3 and trading at $ 6,347 in New York at $ 34,988. It fell to 17% on Monday. Bitcoin quadrupled in 2020.
A variety of factors are cited for the rise of Bitcoin, showing how difficult it is to pinpoint the root cause of the latest volatility. Some dealers have pointed to a JPMorgan Chase & Co. long term price a forecast of as much as $ 146,000, while others cite the overall risk-taking in global financial markets.
“Clear bull market and we are not getting 30 to 40% drop like in 2017,” said Vijay Ayyar, head of business development at crypto exchange Luno in Singapore. ‘The market is mature with larger buyers. However, keep in mind that we are in a parabolic phase and that they are the best. ‘
While the latest price fluctuations may be reminiscent of the recent upsurge, Bitcoin’s ability to turn its slide this week is so rapid that institutional investors are not giving up space, says Matt Long, head of distribution and key products with the cryptomakelary OSL in Hong Kong.
“Monday’s downturn was instructive because institutional investors took the opportunity to buy in,” he said. “Institutional investment is strong in the digital assets sector and could potentially accelerate.”
More settings and noticed investors, from Paul Tudor Jones to Scott Minerd and Stan Druckenmiller, have either started allocating money in Bitcoin, or have said they are open to it.
‘Chase Higher’
“The chase higher is based on the idea that larger main street investors are interested in building long-term positions,” said Stephen Innes, Axi’s chief global strategist. “It’s all about the new era of blockchain technology to which Bitcoin is so uniquely intertwined.”
Some argue that the crypto-currency provides a hedge against dollar weakness and inflation risk in a world flooded with fiscal and monetary stimulus.
“If inflation increases, or even if it does not, and more companies decide to diversify a small portion of their cash balances in Bitcoin instead of cash, the current relative drop in Bitcoin will become an avalanche,” Bill Miller said. of Miller said. Value Partners LLC wrote in a blog Post.
But others say retail investors and the next quantity funds are pumping up an unsustainable bubble.
“Bitcoin is better to be gold than gold than to be gold,” said Anthony Scaramucci, founder and managing partner of SkyBridge Capital, in a statement. interview Tuesday. The firm is the latest to ride the Bitcoin wagon, launching a crypto-centric fund this week.
Read more: Does Bitcoin Boom mean ‘better gold’ or bigger bubble? Quick recording
– Assisted by Matt Turner
(Updates with additional comments.)