Surging investor interest sends bitcoin to peak past $23,000

[snoop1130]

Surging investor interest sends bitcoin to peak past $23,000

By Sinead Cruise and Tom Wilson

 

FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken November 19, 2020. REUTERS/Dado Ruvic/Illustration

 

LONDON (Reuters) - Bitcoin rose to a record high on Thursday, just a day after passing the $20,000 milestone for the first time, amid surging interest from larger investors.

 

The world's highest-profile cryptocurrency jumped 10.5% to $23,655, taking its gains this year past 220%, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities.

 

Smaller coin ethereum, which often moves in tandem with bitcoin, was trading 1.75% higher.

 

With bitcoin's supply capped at 21 million, investors see in the cryptocurrency a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the COVID-19 pandemic.

 

"There will be a search for alternative currencies due to constant fiat money debasement," Deutsche Bank analysts wrote in a note. "It does feel that bitcoin will continue to be in high demand."

 

Cryptocurrencies emerged over a decade ago but quickly became associated with crime, trading glitches, hacks and wild price swings. It is only in the past few years that they have started attracting more mainstream interest.

 

Bitcoin remains less regulated than most traditional assets, but institutional investors have begun to shed scepticism towards cryptocurrencies as better market infrastructure make crypto markets more accessible.

 

The 2020 rally has also been driven by increasing expectations it will become a mainstream payment method, with PayPal opening its network to cryptocurrencies.

 

Still, few people or businesses use bitcoin for commerce.

 

Yang Li of digital foreign exchange platform Ziglu said modern personal money apps were at the forefront of ensuring easy, safe and fast access to cryptocurrency.

 

"Wider adoption will grow the value of bitcoin even more -- this is just the start," Li said.

 

-- © Copyright Reuters 2020-12-17

 

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[ChaiyaTH]

Knew it was a steal in 2018 for around 3500-5000 dollars, boosted my savings quite a bit.

[bkk6060]

Way too volatile for my portfolio, but I can see it going to 100,000 sometime in 2021.

[whaleboneman]

13 hours ago, bkk6060 said:

Way too volatile for my portfolio, but I can see it going to 100,000 sometime in 2021.

Why not just put 5% in if you think it will go that high? 

[Heng]

Having BlackRock and Ark Invest coming into the field is reassuring (for the modest amount I have in).   It'll be a fun ride, but don't forget to buy some real estate along the way as that will outlast any 'tech.'   

[Barnabe]

I’m betting on a wild ride to 40k with a subsequent crash back to 10, and a quick regain to new all time highs.

[TopDeadSenter]

Boxing day now and BTC hitting new all time highs a few times this morning, as I write it stands at $25,000. Well done all fellow long term holders. We took the risk and were amply rewarded. Onwards and upwards in 2021, good luck all.

 I was wondering how others are getting their exposure to the crypto world? I did it through miners and Grayscale trusts, both of which suitably outperformed the underlying asset although the premiums on the Grayscale products make me uncomfortable.

[Barnabe]

Why not buy directly? You don’t need to be extreme to hold them yourself in a cold wallet (although that’s the safest way) but you can buy and hold them directly in a reputable exchange like Coinbase and Binance.