Watch: Bitcoin trades near Sunday record
Bitcoin (BTC-USD) continued to stay strong Monday afternoon after a weekend rally, hovering around the $31,000 (£22,652) mark, although the cryptocurrency remains volatile. Earlier on Monday its price fell as much as 17%, in the biggest drop since March, before recovering.
Over the weekend, it surged to a new record, pushing to above $34,000 for the first time in history.
Nigel Green, CEO of independent financial advisory organisation deVere Group, had noted last month that with governments continuing to support economies and increase spending due to the coronavirus pandemic, investors are going to look to Bitcoin as a hedge against a “legitimate inflation concern.”
His comments go some way in explaining the weekend surge.
He had noted that the world’s biggest institutions, including multinational payment companies and Wall Street giants, are piling “ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest.”
However, he warned that said “there will be a steady pullback in the all-time record-high Bitcoin prices as many traders, like me, begin profit-taking.”
But he said “a dip in prices will then represent an important buying opportunity for investors as digital currencies, in some or another, are now almost universally widely regarded as the future of money,” he added.
Last month month, when Bitcoin hit nearly $25,000, Green had revealed he sold half of his Bitcoin holdings.
He also said that cryptocurrencies are “borderless, making them perfectly suited to a globalised world of commerce, trade, and people” that they are digital, “making them an ideal match to the increasing digitalization of our world.”
A global poll carried out by deVere Group found that nearly three-quarters of high-net-worth individuals will be invested in cryptocurrencies before the end of 2022.
And investment director at stockbroker AJ Bell Russ Mould noted that “amid a widespread rally across asset classes, the oil and gold price both pushed higher, though the appetite for alternatives is reflected in Bitcoin.”
Meanwhile Naeem Aslam, chief market analyst at AvaTrade, said that the rally wasn’t only in Bitcoin but Ethereum as well, the second biggest coin by market capitalisation. It crossed the $1,100 mark over the weekend.
“The spike in the Ethereum price is extraordinary, and traders need to be mindful that a correction is looming. Overall, the sentiment among the crypto community is still positive, and the main theme is the short squeeze.”
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