Bitcoin Soars To Record Highs As “Fear Of Getting Lost” Drives Global Investors | City and business | Finance

The rise in value marks a dramatic rebound from last week’s lows and has triggered rises in other cryptocurrencies such as ether and litecoin. Antoni Trenchev, managing partner of London-based Nexo, which bills itself as the largest digital coin lender in the world, said: “The fear of losing something is slowly coming into play. We are only starting to see some of our customers. retail borrowing against bitcoin to buy more bitcoin and this will ultimately push the rally to $ 20,000. “

Gunnar Jaerv, chief operating officer of Hong Kong’s First Digital Trust, said the surge was “likely the result of major institutional investors joining the bandwagon and buying a portion of BTC’s limited offering in the midst of a race to the top “.

Edward Moya, senior market analyst at foreign exchange specialist Oanda, said, “Bitcoin and all major altcoins are rising strongly, and it appears that the momentum of trade is strengthening as the mass media embraces crypto coverage.”

Bitcoin was worth less than $ 1 when it was advertised as a potential currency in 2010, but experts believe its tightly controlled offering and broader investor base prove it is now a good value option.

Critics of the cryptocurrency, which uses a decentralized ledger called the blockchain to record and verify transactions, warn that it is still volatile and to make those gains sustainable.

The last time bitcoin got close to $ 20,000 in December 2017 it suffered a spectacular slump that wiped out a quarter of its value in a single day before dropping well below the $ 4,000 value at the end of 2018. .

Vijay Ayyar, head of business development with cryptocurrency exchange Luno in Singapore, said investors were now aiming for hikes of up to $ 25,000, but warned that bitcoin becomes “all bullish and then abandoned.”

READ MORE: Bitcoin’s Rebound Based on “Real Volume” Investing

But its price has risen about 170% this year and fans are confident it will overtake gold as the number one safe haven for investors.

Glen Goodman, author of the bestselling book The Crypto Trader, said: “The price has doubled in just a couple of months – an incredible momentum – but when it finally changes, it could easily drop just as fast, as it did after the last boom .

“The long-term potential is considerable, but the short-term level of danger is high.

“Bitcoin has now shown that it has real staying power, the long-term picture looks very promising.”

He continued: “Some of the world’s largest investors say they are now buying bitcoin and gold in their effort to find a safe haven for their wealth.

“They suspect governments are eager to inflate debt by printing a lot of extra cash, which could lead to inflation.

“This would mean that any asset held in currencies like dollars or pounds would lose value, so investors are looking for alternative currencies like bitcoin and gold.

“Big investors are catching up on the scarce bitcoin supply, as are Paypal, Square and other payment companies.

“However, new research shows that most bitcoin holders don’t sell. So with a lot of demand and little supply available, the price is pushed up.”

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Tyler and Cameron Winklevoss, venture capitalists dubbed the first bitcoin billionaires, said the currency was on track to climb to $ 500,000 within the next 10 years as it takes on an increasing role in the global financial system and surpasses gold as a reserve of money. value.

Tyler Winklevoss tweeted: “Come on and up let’s go to the moon!”