Bitcoin hits all-time high of $19,857, extends year-to-date return to 177%
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Bitcoin reached an
The world's most popular cryptocurrency surged as much as 8.7%, to $19,857.03, bringing its year-to-date gain to 177%. Last week the cryptocurrency crashed by $3,000 through Thanksgiving after large-volume profit-taking dragged on prices.
"The Bitcoin correction didn't last long, with the cryptocurrency having sights set on new highs once again, with $20,000 the ultimate goal in the short-term," said Craig Erlam, a senior market analyst at Oanda. "A move into uncharted territory and the psychological boost that would come with a move like this could propel Bitcoin aggressively higher."Cameron Winklevoss, a cofounder of the
He said two factors would drive its price over $100,000.
For one, rising inflation and increasingly negative views of modern monetary policy are leading people and institutions to look for alternative ways to preserve the value of their capital, Nazarov said. And growing demand for yield and the rise of "decentralized finance," or "DeFi" — the fastest-growing sector in the blockchain industry — is accelerating its growth. "Quite simply, the risk-reward equation is starting to flip from traditional financial assets being yield-bearing, less risky, and reliable stores of wealth resistant to inflation over to Bitcoin and various cryptoassets being the sources of yield, increasingly less risk, and a reliable store of wealth," he said.Copyright © 2021. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
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