Bitcoin still does not show any sign of faltering. In the same week, the price for bitcoin grew from $17,000, 18,000, and now nearing its all-time high record at $19,783. With bitcoin’s current growth, will the cryptocurrency’s price eventually value at $100,000 by the end of the year?
Bitcoin about to beat its all-time high price recorded three years ago
Another day, another remarkable growth from bitcoin recorded. Noted from Reuters, the price of bitcoin has grown 4.8% to $19,225. Bitcoin’s current value is only an inch away from its all-time high from three years ago when the cryptocurrency valued at $19,666. These two weeks alone, bitcoin recorded a hefty 25% growth. Accordingly, the price for bitcoin has raised 160% higher this year. Meanwhile, Coindesk reported that bitcoin’s market capitalization has recorded another all-time high this week with around $329 billion valuations. While bitcoin grows stronger, altcoins such as ethereum and XRP are reportedly having a short break after recent sharp gains.
Bitcoin outperforms altcoins and traditional assets
Over the past 12 years, bitcoin is known for its extreme fluctuation. While this means bitcoin investment comes with a very high risk, it also means more returns than traditional assets such as stocks or bonds. Noted from Coindesk, Rick Rieder, chief investment officer at Blackrock even suggested that bitcoin might soon take over gold as crypto is “so much more functional than passing a bar of gold around”. Analysts support the statement, noting that bitcoin could make a good hedge against inflation.
Compared to bitcoin’s significant rise, the traditional go-to hedge against inflation, gold, has in contrary dropped 3.6% this month. With how the pandemic is still putting a pause to global growth and inflation recovery for an unknown time period, the rally between the two assets become an interesting subject to examine.
Analysts’ forecasts on the future of bitcoin rise even higher. Furthermore, big-name investors have started to jump in the bitcoin bandwagon since the peak achieved in 2017. Some investors even expect the cryptocurrency might value quintuple to as high as $100,000 in a year. Though some others think the predictions on bitcoin price are getting ridiculous, bitcoin’s unpredictable fluctuation might actually make the impossible possible.
Read also: Big Investors Drive Bitcoin Price Higher