Bitcoin always hit a new peak in trading on Sunday, December 20 as the remarkable December rally in December continues.
The price of bitcoin hit $ 24,228.83 at 3:44 pm EST before dropping to $ 23,694.88 at 9 pm Bitcoin broke short of the $ 24,000 mark on December 19 after passing the $ 20,000 mark for the first time on Wednesday and has continued to rise since then.
Bitcoin’s rise has previously been attributed to institutional interest in the cryptocurrency as big-name investors like Paul Tudor Jones and Stanley Druckenmiller move into bitcoin while technology companies like Square Inc. and MicroStrategy Inc. also been buying it.
Tesla Inc. installed. and the CEO of SpaceX Inc., Elon Musk, wiped tongue in response to MicroStrategy CEO Michael Saylor, who had suggested that Tesla should convert its balance sheet into bitcoin. Instead of ruling out the possibility, Musk he responded by saying, “Are such large transactions even possible?”
How serious it was is not known, but he later went on to tweet “one word: Doge” referring to Dogecoin, “altcoin” which is also sometimes a feme. Musk’s Doge tweet prompted the cryptocurrency to tread on Twitter and rose 20%. (* Disclosure below.)
Musk trolling aside, Goldman Sachs has come out in support of bitcoin. Jeff Currie, head of global commodity research at Goldman Sachs, said last week that bitcoin looks “very similar” to copper because they are “risk-averse proxies and I would argue bitcoin is the inflation hedge retail. ” Copper is considered a tertiary commodity and is often the third choice for metal-focused investors during economic uncertainties.
How sustainable the current bitcoin rally will move into the new year is a completely different consideration. Bitcoin has traditionally increased and declined and the last major rally peaked on January 1, 2017, followed by a dismal price decline over the following year. While bulls talk a good game about how this time is different, more sober players in the market are warning of the risks.
In a blog post on December 17, Coinbase Inc. CEO and co-founder Brian Armstrong warned, noting 2017 specifically, that it is “important to note that this is not only a time of high volumes, but also price volatility . ”
“We cannot stress enough how important it is to understand that investing in crypto is not without risk,” said Armstrong. “We are… warning investors who may be focusing on short-term speculation and encouraging customers to seek resources and consult financial advisers to better understand the risks associated with investing in cryptocurrencies.”
(* Disclosure: The author currently has a small amount of Dogecoin.)
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