Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin surges to all-time record as 2020 rally powers on

Published 30/11/2020, 14:03
Updated 30/11/2020, 17:15
© Reuters. FILE PHOTO:Representations of virtual currency Bitcoin are seen in this picture illustration

© Reuters. FILE PHOTO:Representations of virtual currency Bitcoin are seen in this picture illustration

By Tom Wilson and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK (Reuters) - Bitcoin soared to a record high against the dollar on Monday, as its 2020 rally steamed ahead, boosted by increased demand from both institutional and retail investors that saw the virtual currency as a safe-haven and a hedge against inflation.

The digital unit touched an all-time peak of $19,864.15, breaking its prior record set nearly three years ago. It was last up 6.1% at $19,306.35.

Last Friday, however, bitcoin dropped more than 8%, below $17,000, before rebounding on Monday.

Bitcoin overall has gained more than 170% this year, fuelled by a demand for riskier assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies would win mainstream acceptance.

"Bitcoin is a natural safe haven for those seeking shelter from rapidly increasing central bank money printing and the inflation that everyone agrees is already increasing," said Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain.

Smaller coins ethereum and XRP, which often move in tandem with bitcoin, gained 5.6% and 6.6%, respectively.

Christopher Bendiksen, head of research at CoinShares, also cited continued corporate and institutional interest as well as post-Thanksgiving retail demand for bitcoin's renewed surge.

"While circumstantial, price action really started picking up speed when the U.S. woke up this morning, which could reflect buying pressure from retail-oriented platforms such as Square (NYSE:SQ)'s CashApp, Robinhood and PayPal," he added.

Square's Cash App and PayPal, which recently launched a crypto service to its more than 300 million users, have been scooping up all new bitcoins, hedge fund Pantera Capital said in its letter to investors a fee weeks ago. That has caused a bitcoin shortage and has driven the rally in the last few weeks.

Bitcoin's 12-year history has been peppered with steep gains and equally sharp drops. Compared to traditional assets, its market is highly opaque.

Analysts say the bitcoin market has evolved since 2017, now boasting a functioning derivatives market and custody services by major financial firms.

The shifts have made it easier for professional investors from hedge funds to family offices to seek exposure to crypto, and as a result markets are, in general, more liquid and less volatile.

© Reuters. FILE PHOTO: Representations of virtual currency Bitcoin are placed on U.S. Dollar banknotes

Bitcoin's march to its prior peak - reached after frenzied buying by retail investors from Japan to the United States - saw the cryptocurrency gain over 250% in just 35 days before losing 70% of its value in less than two months after its December 2017 high.

Latest comments

Ready to POP;-))
If you want save your investment, after 20160 sell it. Dont forget there is 2 more virus waves and an other stronger virus will come from fish market in China. Ask Bill he knows everything about it.
All links about truth will be blocked as usually.
hey Marek'syou got me shocked with this new upcoming virus, Are you surey dear as I am heavily invested in stock market.
well, let's see what boosted stock market, stimulus(printed worthless dollar), hopes on vaccines, terms like hope, could, might be and reality is jobless, oil demand, debts, and damaged economy overall. To recover need years not months. What actually makes healthy economy? Bitcoin? Tesla? or people earning and spending? This is big shark game based speculations and this is only my opinion. Good luck!
Cup of tea anyone ?
if this hits 20k it will. drop to 17-18k then back up to 25+k by January 2021 if it goes past 20k it may go up to 22k
Can you also tell me this week's lottery numbers too? Thanks 😉🤣
Is it likely to still drop anytime soon
Loading shorts
Citi think it shall be 300k soon
wow
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.