Investors choose the cryptocurrency in anticipation of a weak dollar. EFE / Richie B Tongo / Archive
It took the most popular cryptocurrency 10 years to reach a market price of $ 20,000. Just two weeks later, she managed to surpass $ 30,000, and today as a new mentor, she is adding over $ 5,000 in additional earnings from this record four days ago.
Bitcoin traded above $ 35,000 for the first time in its history on Wednesday during the early trading hours of the day, rising to as high as $ 35,520. And a continuation of the bullish run has seen the digital currency rise by more than 800% since mid-March. It’s a rise of more than 330% in one year.
At 13 in Argentina, the price dropped to $ 35,020.
The world’s most popular cryptocurrency crossed 20,000 for the first time on December 16.
The new leap took place as the market continued to vote for two seats in the US Senate representing the state of Georgia. The Democrats wrested one of those seats from the Republicans, while the second was decided face-to-face.
A Democrats’ win of a re-election on the bench, which has yet to be decided, would give way to the scenario of President-elect Joseph Biden’s party dominating the Senate.
Biden promised to increase government spending, which could lead to higher inflation, in addition to buying bonds – the cash issue – from the Federal Reserve. A process that would inflate the prices of financial assets in general and cryptocurrencies in particular.
Several analysts have pointed to the contraction of the market supply thanks to the investment of major players in the public and private sectors, companies and individual investors with significant industry weight; This, combined with the runaway issuance of the currency in nearly every country in the world and the fear of an inflationary global economy caused Bitcoin to maintain a bullish streak, ”analyzed a report from Bitso Exchange.
Bitcoin’s gold competition has already begun
“Thus, many of the critics who saw it as a highly volatile asset realized that it was a safe haven during the pandemic, similar to gold: the commitment to this cryptocurrency no longer comes from investors and speculators, but from the financial industry itself. It is beginning to offer its increasing support,” said the same. the report.
Among the optimistic insights into the future of the cryptocurrency is a report this week from JP Morgan, which he sees as an alternative to investing in gold.
“Bitcoin’s competition with gold is already on our minds,” JPM strategists said in a note, citing recent $ 7 billion gold leaks and more than $ 3 billion in proceeds in the Grayscale Bitcoin Trust.
It could mark a new dawn for the volatile digital currency after years of being considered a game for retail speculators and gamblers.
“Given the amount of financial investment in gold, the displacement of gold as an ‘alternative’ currency means a significant advantage for Bitcoin in the long term,” said JPM.
JPM added that Bitcoin is likely to outpace gold as millennials have become a more important component of the investment market, over time, due to their preference for “digital gold” over traditional bullion.
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