- The data from Coin Metrics suggests that Bitcoin, the world’s most profitable cryptocurrency, is being traded at an all-time high of $41,973
- Climbing in its value by 40% so far this year, BTC is on its expected course after its second-best week since the rally of December 2017
- The proposal of Bitcoin as a potential hedge to deflate inflation has been gaining support among investors as well as the digital currency market
Bitcoin’s price improved significantly, defeating all the existing records and reaching a new record high on Friday. The figure smashed past $41,000 with sheer ease for the very first time. The principal reason behind this rallying of value is the continually increasing trust in cryptocurrency as an inflation hedge.
The details of the fresh record high
The first decentralized peer-to-peer payment network, hence, traded as high as $41,973 at 10:10 a.m. ET reported Coin Metrics through its data. It was the last trading at $40,590 up above 4% from the day prior. The Bitcoin’s rally of 2020 has been successfully extended into the new year which then witnessed it skyrocket above 300%. The current upgrade as of 2021 has been by roughly 40%. This also implies that the crypto continues to sustain its track after second-best week since the surge in December 2017.
Bitcoin’s refining image as the most valuable asset
The blistering bull run of the cryptocurrency has been rightly attracting a lot of attention from the institutional investors. They believe that the BTC represents a potential haven asset and is very beneficial similar to gold. Strategists at JPMorgan have recently claimed that bitcoin is expected to hit $146,000 in the long run, as it has the potential to become an “alternative” currency to gold. Amid the governments’ unprecedented stimulus to deal with the coronavirus crisis worldwide, the scheme of bitcoin as a hedge against inflation has been receiving constant support from the investors.
Though sceptics like economist Nouriel Roubini and American stockbroker Peter Schiff think of Bitcoin as an unpredictable asset with no integral value and how it represents a market bubble that could burst at any point, Bitcoin’s appreciation in terms of figures cannot be subdued. A note was released on Tuesday by Bank of America titled Bitcoin as the “mother-of-all bubbles,”.
In addition to the credit, they explained the spectacular rise of the virtual currency via an accompanying chart. The heart reflected on its value compared to other market bubbles, for example, the U.S. housing bubble of the mid-2000s or the dotcom boom in the late 1990s.
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