Bitcoin first topped $19,000 in December 2017 before crashing spectacularly to around $3,200 a year later. But long-range buy and then hold bitcoin bulls, or maybe HODLers as they’re known in crypto circles, are having the last laugh.
That is because the cost of one bitcoin (XBT) topped more than $40,000 Thursday — double the value from a little over 3 years ago. Prices later slid back to around $38,000.
The value of all bitcoins in circulation is currently over $740 billion and the entire value for all cryptocurrencies is more than $1 trillion, based on CoinMarketCap.
Investors have flocked to bitcoin in recent months as the cryptocurrency has gone mainstream.
Square (SQ) and PayPal (PYPL)now let their subscribers obtain and sell bitcoin. Leading money managers like Paul Tudor Jones, Stanley Druckenmiller — and a lot more recently, Anthony Scaramucci — have embraced it.
Software firm MicroStrategy (MSTR) is already holding bitcoin on its balance sheet. And a top exec at BlackRock (BLK), the world’s largest asset manager, recently reported bitcoin is fundamentally a new, digital gold — an asset that could hold up well during times of dollar weakness and rising inflation.
“It’s not shocking to see bitcoin’s the latest run up. It’s encouraging to see a lot more serious consideration of bitcoin and the digital currency advantage class broadly, since it has real potential to reshape worldwide finance as we know it,” said Michael Sonnenshein, CEO of Grayscale Investments, the world’s greatest crypto asset manager, in an email to CNN Business.
Bitcoin's bubble could very well burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble could burst, warns Anthony Scaramucci. But he is nonetheless a mega-bull
The bitcoin boom has gone into overdrive this week, with prices soaring nearly twenty five % in only the past five days, pressing the cryptocurency previous several milestone levels.
That’s increasing alarm bells while with some bitcoin bulls.
“Market players are actually adopting bitcoin to hedge against instability. But while further development is inevitable, investors should not expect this to move in a straight line,” stated Gavin Smith, CEO of Panxora Group, a cryptocurrency consortium, in an email to CNN Business.
Smith added that bitcoin charges might crash by 25 % at times and that the cryptocurrency should not be considered a “magic cash tree.”
Bitcoin costs could plunge further than 25 %, warns Alex Mashinsky, founder and CEO of Celsius Network, a crypto resource manager.
“Sooner or later on, the bears will accumulate enough pressure to see a correction,” Mashinsky said in a contact to CNN Business, adding that bitcoin prices might fall all the way again to $16,000 before the conclusion of the earliest quarter.
“This is going to flush the vulnerable hands and transfer the baton with all the BTC of theirs from the short term speculators to the future institutions and HODLers,” he added.