Bitcoin ends the month with an attack on the price record, from the beginning of which it strengthened by six thousand dollars. The second most common cryptocurrency ether has also risen significantly in the last 24 hours, surpassing the $ 600 level. However, it still lacks less than 50 percent to reach its historical maximum.
Chief strategist of the investment company Miller Tabak & Co. Matt Maley told Bloomberg that bitcoin could now go as high as $ 22,000. Only then could the current rally run out. Technical indicators indicate that the cryptocurrency is significantly “overbought.” According to Maley, a possible downturn may be very sudden. At that time, the digital currency fell from just over three thousand from the January high of $ 17.5 thousand in less than a year.
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“Now, unlike in 2017, the price of bitcoin is not brought up by speculators, but by institutional investors from the United States who perceive bitcoin as digital gold or Ethereum as a development platform,” Viktora Fischer, a partner with Rockaway Blockchain investment fund, told E15. Anyone who considers cryptocurrency to be similar to gold usually takes it as insurance against the threat of inflation, and therefore plans to keep digital coins for a long time.
The dominant cryptocurrency therefore also benefits from significant investments from companies such as Fintech Square or business-analytical MicroStrategy, which see bitcoin as a hedge against possible inflation at a time of extremely relaxed central bank policy. In addition, according to proponents of the digital currency, bitcoin can be a so-called diversifier in times of uncertainty, increasing the diversity of the portfolio.
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Since the beginning of 2020, the value of bitcoin has increased by more than 150 percent, she recalled agentura Bloomberg. However, she repeatedly warns that 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 in both cases. Therefore, many analysts and investors are rather skeptical about cryptocurrencies. Due to the volatility of bitcoin, they consider its label as digital gold to be inappropriate.
