- With Bitcoin reaching its highest level this week, major players are reflecting on how far space has evolved since the previous record set in December 2017.
- The bullish case seems to be intact as institutional interest continues to be higher for Bitcoin.
- Five crypto experts weighed in on his rally, explaining why Bitcoin has room to go higher and how the dollar’s weakness will further fuel it.
- Visit the Business Insider homepage for more stories.
Bitcoin, the world’s most popular cryptocurrency, hit a record high of $ 19,857 this week.
Increased interest in the digital ticket brought its earnings so far to 177%. The record was last set in December 2017 when its price reached $ 19,783.
Here’s what five crypto experts had to say about its recent surge, and why the dollar hitting its lowest point in 2.5 years is good for Bitcoin.
Peter Smith, CEO and co-founder of crypto exchange Blockchain.com
Smith said bitcoin was a “grand experiment” between 2011 and 2014, when some thought it would take over traditional currencies. But between 2014 and 2017, the Blockchain.com team recognized that it could work.
“From 2017 and on, Bitcoin’s is becoming inevitable. Bet on the inevitability of Bitcoin,” he said.
Paolo Ardoino, CTO at the Bitfinex crypto exchange
“No amount of cynicism, disbelief or even outrageous thinking can hide the compelling case for Bitcoin,” he said. “Global asset managers will continue to re-calibrate their portfolios accordingly.”
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Anthony Denier, CEO of Webull trading platform
The dollar index, a measure of the US dollar against a basket of six currencies, was trading at a two-and-a-half-year low this week. Positive news on the development of the COVID-19 vaccine has raised hopes of a rapid economic recovery and eroded safe haven demand for the dollar. Congressional Democrats coming out in favor of a $ 908 billion stimulus package may also be pushing for US money.
CEO Webull Denier believes weak dollars are good for Bitcoin because the Fed’s policy of printing money, thereby depreciating the dollar, will make people use the token as a haven for inflation.
“If people take money out of gold and put it in Bitcoin, that could give more fuel for a Bitcoin rally,” he said.
Simon Peters, analyst on multi-asset investment platform eToro
Peters said eToro saw a 66% increase in the number of people holding a Bitcoin site on its platform in November, compared to the last time it hit a record high in December 2017.
He highlighted some indicators that suggest Bitcoin could go even higher.
“If we maintain the current raise, then $ 25,000 before the start of 2021 is on the cards,” he said. “Some will sell at $ 20,000, and this could see a short move back. But if bitcoin shakes this sale up and continues to rise, then New Year’s Eve at $ 25,000 is there for the taking.”
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Glen Goodman, author of the popular book ‘The Crypto Trader’
Although Bitcoin has doubled in price in just a couple of months, it could fall just as fast as it did after the last boom, according to Goodman.
“All talk of ‘Tulip Mania’ in the 2017 boom is absent now. Once the historic Dutch tulip bubble burst it never recovered, while Bitcoin has now shown itself to have real staying power,” he said.
The author, who is a contributing expert on cryptocurrency at the London School of Economics, said the “Maisie Williams Indicator” is a great measure to gauge where the level of interest is.
The Game of Thrones star recently conducted an opinion poll on whether to buy Bitcoin. Most of the million voters said no, but at the height of the last Bitcoin boom, most voters in a CNBC twitter poll said yes to Bitcoin at exactly the wrong time, Goodman noted.
“The lesson is: whatever the herd does, it often makes sense to do the opposite,” he said.
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