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Bitcoin surpasses $ 17,000 for the first time in nearly three years.
Bitcoin reached $ 17,000 for the first time since the cryptocurrency bubble burst nearly three years ago.
The largest digital currency, which has more than doubled this year, rose 6.2% to $ 17,732 on Tuesday in New York trading. From an all-time high in December 2017 of nearly $ 20,000, Bitcoin has plummeted to $ 3,136 in one year.
“The demand for more diversified and stable products that take less risk is evidence that the rally is driven largely by sophisticated traders who use them to hedge against the downside of underlying holdings, rather than pump and dump, 100x rekt trades we saw three years ago, “said Denis Vinokourov, head of research at Bequant, a London-based digital asset company. “Bitcoin could even go parabolic in a super-charged $ 20,000 rally as we approach Thanksgiving.”
His earnings this year follow a broader embrace from Wall Street hinges, including Fidelity Investments, which launched a Bitcoin fund over the summer. Some major money managers have also become crypto converts, with macro investor Paul Tudor Jones buying the coin as a hedge against potential inflation. And PayPal Holding Inc. said in October that it will allow customers to access cryptocurrencies, which spurred betting that more people could start using digital tokens.
Crypto fans have watched Bitcoin rise throughout the year, with many aiming for the 2017 record, while others aiming for even higher levels.
“Bitcoin has consistently been one of the best performing assets in the world since its creation,” said Mati Greenspan, founder of Quantum Economics. “This latest wave comes when big players enter the market weakening what little is left to sell.”
While some die-hard fans of cryptography have remained loyal to it through its ups and downs, others have been enthralled by it recently amid the pandemic. Bitcoin got a star boost this week when Maisie Williams, the actress who played Arya Stark in HBO’s “Game of Thrones,” asked her 2.7 million Twitter followers if she should invest in the coin. The investigation led to responses from well-known cryptocurrency investor Mike Novogratz and Elon Musk of Tesla Inc.
should i go long on bitcoin?
– Maisie Williams (@Maisie_Williams) November 16, 2020
Advocates argue that cryptocurrency can act as a safe haven during times of turbulence and can be a hedge against rampant central bank money printing. Still others have been drawn to its spectacular advance this year: the digital currency has increased by more than 135% in 2020 even though it is still around 12% below its all-time high.
But the institutional embrace has been slow to materialize amid the high volatility of cryptocurrencies and some high-profile cases of hacking and theft. The Justice Department said this month that it is suing for the confiscation of more than $ 1 billion worth of Bitcoin, which it claims is linked to the Silk Road crime market that closed seven years ago. And earlier in the summer, the Twitter accounts of some of the most prominent US political and business leaders were hacked in an apparent attempt to promote a Bitcoin scam.
According to data compiled by Bloomberg, Bitcoin has recorded an average daily change of 2.6% this year. This compares with fluctuations of 0.9% for the price of gold, which is sometimes at odds with digital assets.
Hugo Rogers, Deltec Bank & Trust’s chief investment officer, bought Bitcoin for around $ 9,300 in June and has since used any price weakness to add it to his portfolio. Bitcoin now makes up about 5% of its Global Absolute Return Fund, which is great for high-growth tech and biotech companies. It probably won’t stop at the 5% mark, he said.
“A small position in Bitcoin can go a long way,” Rogers said by phone earlier this month. “There is a lack of an alternative in real assets that can show a comparable return. If you’re still planning to diversify your portfolio, this is a good place to go. ”Some bitcoin enthusiasts think the world’s most popular cryptocurrency could be running for $ 20,000 or higher.
(Adds a comment in the third paragraph. Updates the prices.)
–With the assistance of Kenneth Sexton.
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