Market

Bitcoin climbs towards all-time high after topping the $19,000 mark

By Administrator_ India

Capital Sands

Bitcoin moved to within a whisker of its all-time high on Tuesday, after hitting $19,000 for the first time in nearly three years.

The world’s most popular cryptocurrency was last up 4.8% at $19,225, just shy of its all-time record of $19,666 hit in December 2017. Bitcoin has gained around 25% in the last two weeks alone, and is up around 160% this year.

Fuelling its rally have been demand for riskier assets amid unprecedented stimulus programmes to counter the COVID-19 hit; hunger for assets perceived as resistant to inflation; and expectations cryptocurrencies will win wider acceptance as a method of payments.

Bitcoin’s 12-year history has been peppered with vertiginous gains and equally sharp drops. Its markets and price discovery is highly opaque compared with traditional assets such as stocks or bonds,

Smaller digital currencies such as ethereum and XRP – which often move in tandem with bitcoin – took a breather after gaining sharply in recent days.

Crypto markets have matured since bitcoin’s December 2017 peak, attracting a greater number of large investors such as family offices and hedge funds.

Analysts say bitcoin’s limited supply of 21 million makes it a good hedge against inflation. Some investors think the value of traditional currencies will fall as governments and central banks unleash massive stimulus packages to support economies hit by COVID-19.

Gold has shed 3.6% this month, versus bitcoin’s 40% gain.

Bullish investors cited expectations that bitcoin would achieve mass use as a means of payment – something it has so far failed to do – as a reason for the divergence.

Mainstream companies such as PayPal have embraced cryptocurrencies, sparking hopes bitcoin would become widely used and thus more valuable.

Related posts
Market

Nikkei Closes Above 33,000 For The First Time In 33 Years

Japan’s benchmark Nikkei gauge surged on Tuesday, closing over 33,000 for the first time in 33…
Read more
Market

Carlsberg Expects Lower Beer Consumption To Hit 2023 Growth

Danish brewer Carlsberg (OTC:CABGY) on Tuesday forecast organic operating profit growth in 2023…
Read more
Market

Flavour Maker Givaudan Beats Earnings Forecasts in a Tough Year

Swiss fragrance and flavour maker Givaudan on Wednesday reported better-than-expected earnings for a…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *