Bitcoin Surges Above $23,000 Setting a New Record
Bitcoin set a new record Thursday leaping to a high of $23,770.85. This increase marks a 20 percent gain compared to its value the previous day. Bitcoin’s surprise rise comes just a day after it soared past the $20,000 mark for the first time since it was created.
With this rise, bitcoin’s year-to-date gains are now above 200 percent. As expected, the top bitcoin trading platforms suddenly became a beehive of activities, witnessing a lot of movements and new entrants that raised the number of bitcoin traders to over 52 million globally.
Why the rally?
In trying to explain this unprecedented surge, bitcoin enthusiasts and top international brokers cited the wide acceptance of this currency by the financial services companies and institutional investors.
Earlier in 2020, investing giants such as Mike Novogratz and Paul Jones Tudor praised bitcoin and predicted that it will experience big gains in the year. This prediction has come to pass.
Bitcoin’s rally got a major boost in October 2020 following the announcement by PayPal that it would allow its clients to hold, buy, and sell cryptocurrencies.
A remarkable increase in bitcoin’s value was first witnessed in 2017. This increase resulted in many banks warming up for this digital currency, allowing its use as an alternative to gold and other hedge assets. This is perhaps one of the major reasons why bitcoin has maintained a steady rise since 2017.
Many experts, including Scott Minerd of Guggenheim, argue that based on bitcoin’s value relative to that of gold and because of its finite supply, it should be valued at $400,000. This is a major reason why many investors are developing an appetite for bitcoin and explain why there are a lot of activities currently going on on top bitcoin trading platforms.
JPMorgan strategist said the ever-growing interest shown by institutional investors toward bitcoin may end up undermining gold in the near future. Bitcoin and gold share many attributes, but bitcoin has a unique value when it comes to financial transactions. The fact that it is a virtual currency makes it easy to use in financial transactions.
Is it worth investing in bitcoin?
Bitcoin has enjoyed a remarkable momentum this year (2020) as financial-services companies, institutional investors, and analysts turn more and more bullish and optimistic about its uses.
One question in the minds of many investors is whether it is the right time to invest in bitcoin or other cryptocurrencies, for that matter. A simple trading broker comparison will reveal that the best online investment brokers are now urging their clients to consider cryptos.
Moya Edward, Oanda’s top market analyst said that bitcoin’s rally vindicates investors who took advantage of the 2017 boom to invest in the cryptocurrency. But all is not lost for those who never invested then. 2017 isn’t different from now.
Many financial experts believe that those who had never invested in bitcoin should take advantage of its continuous rise in value and invest in it right away. All they need to do is to identify the best online investment brokers, sign up, and start trading.
Why invest now?
Raoul Pal, a Goldman Sacha alumnus and the co-founder of Crypto TV and Real Vision Financial predicted that the value of bitcoin could rise ten times one year from now. Raoul predicted that, by December 2021, bitcoin’s value would be $250,000!
If this prediction comes to pass, those who invest in it today will earn a massive return on their investment. Raoul, who is the current CEO of Global Macro Investor further asserted that “bitcoin is eating the world” on matters of return on investment.