Bitcoin traded 33,365 in Asia today, after soaring to a record high of $34,800 on Sunday as traders continue to bet that the electronic money is on its way to becoming a mainstream advantage.
The most recent milestone for the world’s hottest cryptocurrency came less than three weeks after it crossed $20,000 for the first time, on Dec. 16, and bitcoin has surged some 800% because mid-March.
With bitcoin’s supply capped at 21 million, a few view it as a hedge against the risk of inflation as authorities and central banks flip to the stimulation taps in reaction to the COVID-19 pandemic. Some also see it as a safe-haven play during the COVID-19 War, akin to golden.
“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore currency analyst Moh Siong Sim said of the most recent rally.
Bitcoin’s advance also reflects increasing expectations it will become a mainstream payment method, with PayPal launching its network to cryptocurrencies.
The capacity for quick gains has attracted demand from bigger US investors, as well as from traders who normally adhere to equities.
Institutional investors see the potential for higher risk-adjusted returns compared to traditional investments,” he said.
Bitcoin transactions on numerous exchanges, among the largest of which is Coinbase, itself preparing to go public to become the first big US cryptocurrency market to list on Wall Street.
Multiple rival cryptocurrencies utilize similar blockchain, or digital ledger, engineering. Ethereum, the second largest, shot to a record $1,014 on Sunday.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Kevin Buckland. Additional reporting by Tom Westbrook and Alun John. Editing by Jacqueline Wong, Kenneth Maxwell and Raju Gopalakrishnan.
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