Bitcoin has reported a colossal surge above the US$ 18,000 mark for the first time in three years. A driving rally of as much as 3.3 percent was witnessed, with the Bitcoin soaring to $19,272.21 as of 24th November 2020.
Renowned financial firms in the United States speculate that tomorrow’s money would flow in new Crypto flavors, and recent stats stand evidence for that. The digital currency’s rally was rekindled for the first time in 3 years, as Wall Street and Main Street expressed renewed interest in crypto-investments.
The digital asset’s market capitalization has reached another high wave of $336 billion, surpassing its previous record of $328 billion set in late 2017.
As state by Deutsche Bank analysts, Bitcoin has closed above $17,000 for only five other days in history.
Bitcoin is now “ready to retest its all-time high and possibly move above $20k,” said Ian Balina, CEO of AI-driven cryptocurrency research firm Token Metrics. “That is well within means for BTC as the global economic climate is perfect for bitcoin to launch to new heights.”
The price has risen by more than a third so far in November. Since the start of October, it’s gained around 70%. Many analysts, including Erlam, expect the price to top $20,000, with some expecting even higher levels.
In recent weeks, cryptocurrencies have gathered the attention, with companies and investors preferring to align their finances with trending digital currencies. The payment company Square recently purchased $50 million worth of bitcoins, which some investors perceived as quite the rare utilization of corporate cash. Having bought 4,709 bitcoin, the digital currency holding represents roughly 1 percent of Square’s total assets as of Q2-2020.
The news of Square’s Bitcoin purchase pushed Bitcoin above US$ 13,000 and fostered speculation about whether the digital currency’s recent rally had the fire to brew a storm. Big Wall Street names like BlackRock’s CEO, Rick Rieder, have also backed the bitcoin rally. Speaking at a local event for venture capital, Rieder said, “Bitcoin is here to stay.”
“I’ve warmed up to the fact that bitcoin could be an asset class that has a lot of attraction,” hedge fund tycoon Stanley Druckenmiller added at a separate event.
Most businessmen and venture-capitalists are skeptical about this “velodrome with no finish line.” Whereas, philanthropist Ray Dalio said last week that he “might be missing something about bitcoin,” adding that the digital currency’s volatility harshly plummets its use as an unbreakable store of wealth and exchange.
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