[ad_1]
REUTERS / Baz Ratner
- Bitcoin rose above $ 18,000 on Wednesday, its three-year high, and its market capitalization hit an all-time high of $ 336 billion.
- The price closed above $ 17,000 in just another five days in history, Deutsche Bank analysts said.
- The frenzy over its price has caught the attention of Hollywood celebrity Maisie Williams, who conducted a Twitter poll on Tuesday on whether to buy Bitcoin.
- Events that triggered the rise in Bitcoin prices include improved mainstream acceptance and President-elect Joe Biden appointing crypto-friendly Gary Gensler to oversee Wall Street regulations, an OANDA analyst said.
- Visit the Business Insider home page for more stories.
Bitcoin exploded above $ 18,000 on Wednesday, taking its market cap to an all-time high.
The price of the digital token jumped 2.5% to $ 18,147 around 6:15 AM ET, and its price has risen about 154% year to date. Bitcoin recorded its highest price ever in December 2017, reaching $ 19,783.
The market cap of the digital asset reached a new high of $ 336 billion, eclipsing its previous record of $ 328 billion set in late 2017, according to data from Coin Gecko.
According to Deutsche Bank analysts, Bitcoin has closed above $ 17,000 for just another five days in history.
The currency’s latest surge began in October after PayPal announced it would allow its users to buy, sell, and hold the token. The cryptocurrency bulls said it was only a matter of time before other large companies adopted its use. The frenzy also led “Game of Thrones” star Maisie Williams to take a Twitter poll to decide if she should buy Bitcoin.
Billionaire investor Mike Novogratz responded, saying that it was expecting its price to reach $ 20,000 for the first time before hitting $ 65,000 due to a “net effect” where there were a lot of new buyers and a low supply. “So YES, buy it,” he said.
Read more: JPMorgan shares 35 European stocks across 10 sectors you need to own in the rotation for value, including one that could see EPS growth of nearly 700% next year
But some seem to think that this may just be a bubble and its price may collapse at some point.
“It is certainly only a matter of time before a new high is reached,” said Craig Erlam, senior market analyst at OANDA Europe. “Although there is something in the immense earnings of the last month that makes me a little nervous, given the past experience”.
The price of Bitcoin has risen by more than a third so far in November. Since the beginning of October it has gained around 70%.
Many analysts, including Erlam, expect the price to hit $ 20,000, with some predicting even higher levels.
Bitcoin is now “ready to retest its all-time high and possibly exceed $ 20k,” said Ian Balina, CEO of artificial intelligence-based cryptocurrency research firm Token Metrics. “This is very beneficial for BTC as the global economic climate is perfect for launching bitcoin to new heights.”
According to Edward Moya, another senior analyst at OANDA, bitcoin seems to have everything in its right direction. This is largely due to mainstream acceptance improving, President-elect Biden appointed Gary Gensler, someone considered cryptocurrency friendly, to oversee Wall Street regulations and continued institutional interest, he pointed out.
Read more: GOLDMAN SACHS: Buy These 20 Heavily Underrated Stocks Now Before Recovery Helps Them Bounce and Crush Low Wall Street Expectations in 2021
[ad_2]Source link
