Bitcoin price SURGE as cryptocurrency hits all-time record high – up 380% in 12 months


The world’s most popular cryptocurrency is up about 29 percent since the start of 2021. And in the past 12 months has surged more than 380 percent. In a further sign of cryptocurrency‘s growing interest the value of the entire market, which is made up of bitcoin and other digital coins like ethereum, surpassed $1 trillion for the first time.

Simons Chen, executive director of investment and trading at cryptocurrency financial services firm Babel Finance, claimed the rally would attract the attention of asset managers and encourage them to diversify their investment portfolios. 

The finance expert also indicated crypto offered a unique alternative to traditional investments to mitigate against an uncertain geopolitical climate and inflation. 

He told CNBC: “This latest bull run in January is sure to attract the asset managers’ attention to diversify even more of their assets to crypto as they are keen on finding alternative investments, such as cryptocurrency or gold, to hedge inflation and geopolitical risks.

Mr Chen went on to say the bull run was also attracting retail investors as they looked to seize on the opportunity to make “quick, easy gains”. 

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He said: “A large number of retail investors have also joined the race recently as they fear to miss out on opportunities to make easy, quick gain from the latest bull run.”

But other sceptics have labelled the bitcoin price boom a bubble. 

David Rosenberg, economist and strategist at Rosenberg Research, said the “highly abnormal” rally would be short-lived.

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He said: “The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal.”

But Craig Russo, director of innovation at blockchain firm Polyient, was more optimistic, claiming the cryptocurrency has now entered a “new phase of price discovery”. 

The expert claimed the markets had not yet witnessed peak retail participation, which he predicted would continue to drive the bullish market into 2021. 

He told The Independent. “Bitcoin has entered a new phase of price discovery, largely driven by amplified institutional interest in the digital asset. 

“We have not yet seen peak retail participation, as highlighted by the low search and social activity relative to 2017.

“Retail participation, coupled with accelerated institutional participation will likely continue to drive the bull market in Q1.

“Bitcoin successfully cemented itself as a legitimate asset in 2020 and will continue to be adopted across the financial industry, regardless of any positive shift in the traditional global economy.”

Rachid Ajaja, CEO of decentralised platform AllianceBlock, added: “In Q1, bitcoin could peak between $50,000 and $60,000. Bull runs usually last for around three years, so we can probably expect it to be 2023 before we see massive corrections.

“Any kind of crash is likely to be outside the sphere of macroeconomics, or potentially as a result of an issue with miners or dramatic overpricing that needs over correcting. Any crash we do see will not be as drastic as those that we have seen before, thanks to increased network effects and institutional involvement.”





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