- Tram Ho
The bitcoin price has risen 20% in just the past 5 trading days, surpassing $ 40,000 for the first time in history by the end of this week, pushing the total value of the entire crypto market above 1 trillion. USD, is also the first time in history.
The rise of cryptocurrencies, and especially the skyrocketing value of bitcoin, has created a lot of buzz among investors. Bitcoin was trading at around $ 10,000 / BTC in early September 2020 and failed to cross the $ 20,000 threshold until mid-December. Since then, it has “taken off”, reaching $ 28,000 by the weekend. Christmas and continue to sublimation to 30,000 USD for the first time on 2/1 past. The digital asset has doubled in value in less than a month and has more than quadrupled in the past year.
While crypto speculators have argued that this staggering rise is fully valid, some Wall Street pundits are warning that this is not going to end.
Specifically, according to Michael Hartnett, chief investment strategist at Bank of America Securities, bitcoin’s recent bull run could be a prime example of a “speculative mania” and the bubble forming could be. is the source of all bubbles.
Hartnett pointed out in a recent report that the dramatic rise in bitcoin over the past two years – a roughly 1,000% increase since the start of 2019 – is much larger than the rise of any other asset in decades. recently.
That includes a 400% surge in gold prices in the late 1970s, as well as other notable investment crazes such as the Japanese stock exchange in the late 1980s, the Thai stock market in the mid-years. 1990, the dot-com bubble of the late 1990s and the US housing price bubble of the mid-2000s. All of these assets experienced a three-digit increase before they collapsed.
Hartnett does not anticipate a sharp drop in bitcoin’s price. Instead, he cites the cryptocurrency’s decline as an example of investment behavior that is increasingly closer to speculation. Hartnett is not alone in the bitcoin price alarms. Given that the US dollar has stabilized somewhat recently, some experts believe that holding bitcoin as a hedge against a decline in fiat value is most likely a misconception.
However, those who put their faith in Bitcoin insist that the price of the virtual currency will continue to rise as bitcoin is gaining widespread adoption by large companies like PayPal and Square, or interest. increase of big name investors like Paul Tudor Jones or Stanley Druckenmiller.
Source : Genk