The price of the most famous cryptocurrency bitcoin on Thursday rose above $ 14,500 (more than 327,000 crowns) for the first time in almost three years and continues to rise. Trading in this virtual currency is now very busy, influenced by, among other things, the uncertainty associated with the presidential election in the United States. This was stated by the server Cointelegraph.com, which deals with news about cryptocurrencies. However, fears of a pandemic and generally higher investor interest also contribute to the interest in bitcoin, Bloomberg noted.
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The price of bitcoin on the Bitstamp stock exchange was around $ 14,500 around noon. Later, growth picked up speed and approached the $ 15,000 mark. Thursday’s bitcoin gains are nearly eight percent, making cryptocurrency the most expensive since January 2018.
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Bitcoin also benefits from significant investments from companies such as Square and Paul Tudor Jones. According to currency proponents, bitcoin can be a so-called diversifier in times of uncertainty, which will increase portfolio diversity. Certain factors, such as the current closure of European countries due to a pandemic or the delay in the US election, are helping to increase its growth.
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But as Bloomberg points out, the world of cryptocurrencies is very unstable. Bitcoin has grown rapidly in the past, especially in December 2017 and then in mid-2019, but then fell sharply. Therefore, many analysts and investors are rather skeptical about cryptocurrencies.
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Empire Financial Research analyst Whitney Tilson said he still considered cryptocurrencies to be a “technolibertarian pump-and-dump project.” By this is meant a form of fraud in which a fraudster praises something to attract buyers, and when he achieves a price increase due to investor demand, he quickly gets rid of the product at that higher price. Trustworthy investors will lose money. Tilson noted that most investors are advised to avoid cryptocurrencies.
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Some investors expect cryptocurrency prices to continue. Fundstrat Global Advisors LLC analyst Rob Sluymer says a new level of price resistance could cost $ 20,000 for bitcoin.
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In addition to gold, Bitcoin is one of the alternative investments that investors are resorting to at a time of decline in traditional markets. In addition to conservative gold, bitcoin offers a greater rate of appreciation, but also the possibility of greater loss.
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