Bitcoin first topped $19,000 in December 2017 before crashing spectacularly to around $3,200 a year later. But long-term buy and hold bitcoin bulls, or maybe HODLers as they’re known in crypto circles, are experiencing the last laugh.
That’s because the cost of one bitcoin (XBT) topped over $40,000 Thursday — double the value from a little more than 3 years back. 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 those cryptocurrencies is more than one dolars trillion, as reported by CoinMarketCap.
Investors have flocked to bitcoin in recent weeks as the cryptocurrency has gone mainstream.
Square (SQ) and PayPal (PYPL)now let their users buy as well as advertise bitcoin. Leading money managers such as Paul Tudor Jones, Stanley Druckenmiller — and a lot more recently, Anthony Scaramucci — have embraced it.
Software firm MicroStrategy (MSTR) is now holding bitcoin on its balance sheet. And a premier exec at BlackRock (BLK), the world’s largest asset manager, recently claimed bitcoin is fundamentally a brand new, digital gold — an asset that may hold up nicely during times of rising inflation and dollar weakness.
“It’s not shocking to see bitcoin’s recent run up. It’s encouraging to see a lot more serious consideration of bitcoin and the digital currency advantage class broadly, as 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 supervisor, in an email to CNN Business.
Bitcoin's bubble might burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble might burst, warns Anthony Scaramucci. Though he is nevertheless a mega-bull
The bitcoin boom has gone into overdrive this week, with costs soaring roughly 25 % in only the past 5 days, pushing the cryptocurency past many milestone quantities.
That is raising alarm bells even with some bitcoin bulls.
“Market players are actually adopting bitcoin to hedge against instability. But while additional development is inevitable, investors should not expect this to move in a straight line,” said Gavin Smith, CEO of Panxora Group, a cryptocurrency consortium, in a contact to CNN Business.
Smith added that bitcoin prices could crash by 25 % at times and that the cryptocurrency shouldn’t be considered a “magic cash tree.”
Bitcoin price tags could plunge further compared to twenty five %, warns Alex Mashinsky, CEO and founder of Celsius Network, a crypto resource manager.
“Sooner or even later on, the bears will accumulate plenty of pressure to see a correction,” Mashinsky said in an email to CNN Business, adding that bitcoin rates can fall all the way back again to $16,000 before the conclusion of the first quarter.
“This is going to flush the weak hands and transport the baton with all the BTC of theirs from the short-term speculators to the future institutions and HODLers,” he added.