A dizzying rally triggers the world’s largest cryptocurrency to surge more than 300% in a year
Bitcoin always hit a high at noon on Saturday, surpassing $ 24,000 briefly, in its lightweight rally that has seen it surge more than 300 percent in a year.
As of December 20, 2019, the world’s largest cryptocurrency traded at $ 7180.37.
On Saturday, bitcoin reached $ 24,122.67 before falling back to $ 23,978.86 – up 5.49 percent in intra-day trading – just two days after it first crossed the $ 23,000 mark.
The controversial digital asset, which justifies bullish outlook from its die-hard opponents, seems to prove skeptics wrong, as it continues its relentless rally and set several new milestones last week.
According to some Wall Street analysts, bitcoin trading is likely to hit $ 25,000 or more in the coming weeks.
While more crypto-bullish operators see it maintaining its tendency to reach new levels next year.
Bloomberg Crypto noted that the digital currency could hit $ 50,000 next year, as macroeconomic, technical and demand versus supply indicators are supportive of the result.
However, the key question remains: What is driving the impressive rise of this marquee digital money brand originating from celebrity critics and cynics, including Dr. Nouriel Roubini and former White House chief economic adviser Gary Cohn as a class assets with “nothing inherent. value, not underpinned by any asset, not legal tender ”.
Analysts argued: “But this time it’s more about investors than speculators.”
They pointed out that institutional investors, including various notable public companies and hedge funds, have entered the digital money market with significant capital deployment.
Another reason they pointed out is that further impulsive efforts by various governments have put bitcoin on the map as a semi-secure haven, possessing many gold-worth of store value.
At the same time, a supply squeeze is also playing its part with large spot buyers, mostly institutions, creating a shortfall in bitcoin’s liquidity, pushing up prices to shoot up.
Eric Demuth, chief executive officer (CEO) of the cryptocurrency trading app Bitpanda, was quoted as saying that “this run is completely different from the one in 2017” when the price was driven primarily by retail investors.
An increasing number of asset managers have begun to recognize bitcoin as a hedge against currency and gold. Investing titans like Paul Tudor Jones has bought into bitcoin, holding a portion of assets under management with the crypto as a hedge against inflation.
PayPal, the leading online payment platform, recently reported that its 350 million (m) users would soon be able to deposit bitcoin and other cryptocurrencies into their accounts and spend it on 26 m traders.
Daniel Gouldman, CEO of crypto-banking platform operator Ternio, said PayPal certification could help the cryptocurrency go mainstream.
Issac John
The Editorial Director of Khaleej Times, is a well-connected Indian journalist and economic and financial commentator. He has been in the UAE’s mainstream journalism for 35 years, including 23 years with the Khaleej Times. An English graduate and economics graduate, he has won over two dozen awards. Acclaimed for his genuine and insightful analysis of global and regional businesses and economic trends, he is respected for his insightful understanding of the local business world.