Bitcoin rose to touch a high of $38,000 and has continued it’s bullish surge early in 2021. It accounts for about two-thirds of cryptocurrency market value, followed by Ether at about 13%, according to CoinGecko data.
Digital coins are jumping in a world awash with fiscal and monetary stimulus, even as some commentators fear an inevitable bust and others question the basic integrity of crypto markets. Proponents of Bitcoin argue it offers a hedge against dollar weakness and the risk of faster inflation, a bit like gold, while critics decry the intellectual soundness of comparing the two assets.
Bitcoin hits $38,000 chart below
Cryptocurrencies hit the milestone after a fivefold climb in market value in the past year, data from tracker CoinGecko shows. Strategists have cited demand from speculative retail traders, trend-following quant funds, the rich and even institutional investors as among the reasons for the surge.
Active Bitcoin accounts are nearing their all-time high levels of late 2017, according to researcher Flipside Crypto — possibly a sign that some holders are planning to sell. Fewer than 2% of accounts hold 95% of Bitcoin supply, so a few big trades can impact prices. The last big Bitcoin boom began imploding in late 2017.
While bitcoin did climb to nearly $20,000 in December 2017, it didn’t stay there long, as it quickly plunged, wiping out significant value.
Since many market observers have been crediting institutional interest with driving the current rally, some are hoping these conditions will fuel more sustainable gains.
Have you invested in Bitcoin? Are you plnning to invest in Bitcoin? let us know what your take is on this cyrptocurrency making so much waves in the financial world.