Bitcoin trades near Sunday record of $34,800 following 800% surge



© Reuters. FILE PHOTO: A representation of virtual currency Bitcoin is seen in front of a stock graph

By Kevin Buckland

TOKYO (Reuters) – traded at $33,365 in Asia on Monday, after soaring to a record high of $34,800 on Sunday as investors continue to bet the digital currency is on its way to becoming a mainstream asset.

The latest milestone for the world’s most popular cryptocurrency came less than three weeks after it crossed $20,000 for the first time, on Dec. 16, and bitcoin has now surged some 800% since mid-March.

With bitcoin’s supply capped at 21 million, some see it as a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the COVID-19 pandemic. Some also view it as a safe-haven play during the COVID-19 pandemic, akin to gold.

“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore currency analyst Moh Siong Sim said of the most recent rally.

“It seems like people are preferring bitcoin as an expression of concern over currency debasement, relative to gold.”

Bitcoin’s advance also reflects increasing expectations it will become a mainstream payment method, with PayPal opening its network to cryptocurrencies.

The potential for quick gains has also attracted demand from larger U.S. investors, as well as from traders who normally stick to equities.

“The rally gained even more momentum as insatiable investors continued trading from home” during the New Year holidays, said Dave Chapman, Executive Director at Hong Kong based digital asset company BC Group.

READ  Explainer-What's next for Rio Tinto's Arizona copper project after U.S. land swap

Institutional investors see the potential for greater risk-adjusted returns compared to traditional investments, he said.

Bitcoin trades on numerous exchanges, one of the largest of which is Coinbase, itself preparing to go public to become the first major U.S. cryptocurrency exchange to list on Wall Street.

Multiple competitor cryptocurrencies use similar blockchain, or electronic ledger, technology. , the second biggest, shot to a record $1,014 on Sunday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here