Bitcoin Peaks Past $23,000, Spurred by Surging Investor Interest

Investors see in Bitcoin a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the pandemic.

Bitcoin Peaks Past $23,000, Spurred by Surging Investor Interest

The 2020 rally has also been driven by increasing expectations it will become a mainstream payment method

Highlights
  • Bitcoin remains less regulated than most traditional assets
  • Institutional investors are shedding scepticism towards cryptocurrency
  • Still, few people or businesses use Bitcoin for commerce
Advertisement

Bitcoin rose to a record high on Thursday, just a day after passing the $20,000 (roughly Rs. 14.7 lakhs) milestone for the first time, amid surging interest from larger investors.

The world's highest-profile cryptocurrency jumped 10.5 percent to $23,655 (roughly Rs. 17.4 lakhs), taking its gains this year past 220 percent, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities.

Smaller coin ethereum, which often moves in tandem with Bitcoin, was trading 1.75 percent higher.

With Bitcoin's supply capped at 21 million, investors see in the cryptocurrency a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the COVID-19 pandemic.

"There will be a search for alternative currencies due to constant fiat money debasement," Deutsche Bank analysts wrote in a note. "It does feel that Bitcoin will continue to be in high demand."

Cryptocurrencies emerged over a decade ago but quickly became associated with crime, trading glitches, hacks, and wild price swings. It is only in the past few years that they have started attracting more mainstream interest.

Bitcoin remains less regulated than most traditional assets, but institutional investors have begun to shed scepticism towards cryptocurrencies as better market infrastructure make crypto markets more accessible.

The 2020 rally has also been driven by increasing expectations it will become a mainstream payment method, with PayPal opening its network to cryptocurrencies.

Still, few people or businesses use Bitcoin for commerce.

Yang Li of digital foreign exchange platform Ziglu said modern personal money apps were at the forefront of ensuring easy, safe and fast access to cryptocurrency.

"Wider adoption will grow the value of Bitcoin even more, this is just the start," Li said.

© Thomson Reuters 2020


Is MacBook Air M1 the portable beast of a laptop that you always wanted? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Bitcoin
WhatsApp to Start Offering Health Insurance, Micro-Pension Products in India Soon
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »