The bitcoin continues with its 'high' and beats, unstoppable, one brand after another in a 'rally' that experts say should end at $ 50,000 in the first quarter of 2021. After reaching $ 35,000 this Wednesday, the most traded of the crypto currencies has risen to almost $ 38,000 and accumulates a 30% boom in the first seven days of 2021. The latest pull of the 'crypto' queen has left another impressive milestone: the total capitalization of the The cryptocurrency market, which has more than 8,000 assets according to CoinMarketCap, has exceeded, for the first time in history, a trillion dollars.
According to various outlets, the digital currency reached an all-time high of $ 37,724.67 around 11:44 a.m. Singapore time, more than three hours after breaking $ 36,000, according to data from Coindesk. With the latest record, the bitcoin boom is close to 400% in the last 12 months, quite a feat, more if you take into account that in March it fell to $ 3,000, amid the surge in sales of the markets for the effects of Covid-19.
The resurgence of Bitcoin has been attributed to a number of factors, including increased buying from large institutional investors. High-profile investors like Paul Tudor Jones, for example, have been buying Bitcoin.
Many Bitcoin bulls say the crypto-currency is akin to "digital gold," a potential safe-haven asset and a hedge against inflation. In a recent research note, JPMorgan said that bitcoin could hit $ 146,000 in the long run as it competes with gold as an "alternative" currency. However, the investment bank's strategists pointed out that bitcoin would have to be substantially less volatile to reach this price. Bitcoin is known for wild price swings.
The idea of bitcoin as a hedge against inflation has continued to gain traction as governments around the world embark on large-scale fiscal stimulus programs. Analysts argue that this could cause a spike in inflation.