TechDigits

Tech news
Saturday, Apr 20, 2024

Bitcoin surges above $15,000 and is closing in on record

Bitcoin surges above $15,000 and is closing in on record

Bitcoin soared more than 7% Thursday and was trading above $15,000 — its highest level in nearly three years — as mainstream interest in the cryptocurrency builds and the US dollar weakens.

The value of one bitcoin has more than doubled in 2020. The gains have been particularly dramatic in the past few weeks, with bitcoin rising 40% since early October.

If bitcoin continues to surge, it may not be long before the cryptocurrency finally tops the all-time high of just under $20,000, reached in December 2017.

In addition to the dollar weakening, bitcoin has benefited from more mainstream companies like PayPal (PYPL)and Square (SQ) embracing cryptocurrencies as a viable payments options and investments.

"Nothing is stopping it from going to the 2017 high," said Bill Noble, chief technical analyst with research firm Token Metrics, in an email to CNN Business.

"Everybody is afraid to miss out, and that drives the price."

Lingering uncertainty about the outcome of the presidential election may also be fueling the recent bitcoin spike, Noble added. Investors may be fleeing the dollar and buying bitcoin.

The US Dollar Index, which tracks the greenback versus the euro, yen and several other major currencies, is down about 1.5% so far this week.

Inflation hedge and beneficiary of weaker dollar


Bitcoin, along with gold, may remain momentum bets for investors looking to take advantage of continued dollar weakness. Gold prices, which hit a record high above $2,000 an ounce earlier this year, are up about 30% in 2020.

"The bitcoin and gold rally has been happening all year along with dollar weakness. It's a longer-term trend," said Jeff Mortimer, director of investment strategy for BNY Mellon Wealth Management, in an interview.

With all this in mind, Alex Mashinsky, CEO of cryptocurrency lending firm Celsius Network, is even more bullish on bitcoin.

"Not only is $15,000 going to happen, but I stand by my predictions from the beginning of the year that [bitcoin] will see all new highs before 2021," Mashinsky said in an e-mail.

The rise in bitcoin this year is all the more remarkable when you consider that prices plunged below $5,000 in mid-March during the height of Covid-19 pandemic worries in mid-March.

"Bitcoin comes out stronger after each challenge," said Michael Sonnenshein, managing director of Grayscale Investments, a digital currency asset management firm. "People are looking at bitcoin as a store of value and inflation hedge."

Coronavirus is only making bitcoin even more popular as an investment option.

According to a survey of 1,000 US consumers during the summer by a market research firm on behalf of Grayscale, nearly 40% said that the Covid-19 crisis made bitcoin more appealing as an investment.

Sonnenshein said the realization that bitcoin is probably better as an investment than as an actual form of payment is key to its continued success.

"There used to be a prevalent narrative that because bitcoin is not something you'd go to the store to buy a latte with, it's failed. That's no longer the case," Sonnenshein said.

Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×