Bitcoin hits nearly three-year peak, households on record
Bitcoin on Tuesday soared to its highest level since December 2017 as the asset’s perceived quality as a hedge against inflation and expectations of general acceptance drew in institutional and retail demand.
The longest cryptocurrency in terms of market capitalization it rose to $ 17,868 (approximately Rs. 13,27,300), its highest level since December 20, 2017, and finally rose 6.1 percent to $ 17,760 (approximately Rs. 13,19,200) . In mid-December 2017, it hit $ 20,000 (roughly Rs. 14.85,500 crore), during a shopping frenzy fueled by retail investors.
Bitcoin is up about 150 percent this year and recovered around 360 percent from its March lows.
“Driven by a combination of market structure and strong fundamentals, bitcoin could now be just days away from hitting its all-time high,” said Nicholas Pelecanos, NEM’s chief operating officer.
“Behind this bullish price action is the inflation hedging narrative that has captured Wall Street since the huge money printing campaigns launched by the Fed earlier this year,” he added.
Citi technical analyst Tom Fitzpatrick said in a note that bitcoin it could go as high as $ 3.18,000 (roughly Rs. 2 crores), according to its charts.
Other major cryptocurrencies, including ethereal and XRP, which often moves in tandem with bitcoin, was up 4.2 percent at $ 479.91 (roughly Rs 35,700) and up 4.5 percent at 30 cents (roughly Rs 20), respectively.
Bitcoin’s rally in 2020 has built on strong appetite for riskier assets following unprecedented stimulus measures from the government and central bank to combat the shock. COVID-19 pandemic, and its reputation for being inflation-proof.
Investors, such as family offices, who manage money on behalf of wealthy people, have sought cryptocurrency as a hedge against any future inflation that may stem from central bank stimulus, analysts said.
The supply of Bitcoin is limited to 21 million. Proponents say your scarcity provides innate value and shields you from central bank or government policies that fuel inflation.
An expectation that major companies will embrace bitcoin and its use as a means of payment to become mainstream also boosted purchases, analysts said.
Bitcoin has risen almost in half since PayPal said last month that he would open your network to bitcoin and other cryptocurrencies.
In an interview with Bloomberg TV earlier this month, Rick Rieder, director of global fixed income investments at BlackRock, said that crypto assets were a useful addition to a balanced portfolio.