Following the surge of more than 20% this week, Bitcoin surpassed the $23,000 mark for the first time and experts foresee that more gains lie ahead for the globe’s biggest cryptocurrency.
On Thursday, the cryptocurrency surged to as much as about US$23,256.92 before paring some of the advance. Cryptocurrency-linked stocks in South Korea, Japan, and China have gradually risen. Given Bitcoin’s history of boom and bust, rally in the cryptocurrency ‘Bitcoin’ is a conflicting opinion.
Some people argue that the digital coin is pressurizing in on gold as a portfolio diversifier amidst the dollar weakness and potential inflationary stress. While others view it as a risky zeal that will necessarily drive to a similar meltdown that happened three years ago following an extreme Bitcoin rally.
Still, there are clues that longer time investors such as the asset managers and family offices are playing more of a role this time around, besides trend-following quant funds. It is anticipated that the Bitcoin price will rise to $25,000 by the end of the day.
Crypto experts foresee bitcoins to surpass the 1 trillion market cap soon. As per DW, there is an endorsement from financial institutions like Fidelity Investments and JP Morgan and public companies like mobile payments firm Square, which has stored some of its cash in the form of Bitcoin. Guggenheim Partners, for example, lately stated that it might invest up to 10 percent of its $5.3-billion Macro Opportunities Fund in a bitcoin trust.
Kay Van-Petersen, global macro strategist at Saxo Capital Markets Pte in Singapore stated that the price will now go from linear to parabolic in part as retail investors have so far principally been out of this rally.
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