Bitcoin primarily topped $19,000 in December 2017 before crashing spectacularly to around $3,200 a year later. But long-range buy and hold bitcoin bulls, or perhaps HODLers as they’re widely known around crypto circles, are having the final laugh.
That’s because the cost of one bitcoin (XBT) topped over $40,000 Thursday — double the value from a little over three years ago. Charges later slid back to around $38,000.
The value of all bitcoins in circulation is now more than $740 billion and the total value for all cryptocurrencies is more than $1 trillion, as reported by CoinMarketCap.
Investors have flocked to bitcoin in recent months as the cryptocurrency has gone mainstream.
Square (SQ) and PayPal (PYPL)now let their subscribers buy as well as promote bitcoin. Top money managers such as Paul Tudor Jones, Stanley Druckenmiller — and much more recently, Anthony Scaramucci — have embraced it.
Software firm MicroStrategy (MSTR) is now holding bitcoin on its balance sheet. And a high exec at BlackRock (BLK), the world’s largest asset manager, recently reported bitcoin is fundamentally a brand new, digital gold — an asset that may hold up nicely during times of dollar weakness and rising inflation.
“It’s not surprising to get bitcoin’s recent run up. It is encouraging to see more serious consideration of bitcoin and the digital currency asset class broadly, because it’s 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 could burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble could burst, warns Anthony Scaramucci. however, he’s still a mega-bull
The bitcoin boom has gone into overdrive this week, with prices soaring roughly twenty five % in just the previous five days, pushing the cryptocurency past many milestone levels.
That is raising alarm bells while among some bitcoin bulls.
“Market players are adopting bitcoin to hedge against instability. But while additional growth 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 rates can crash by 25 % at times and that the cryptocurrency should not be considered a “magic money tree.”
Bitcoin costs could plunge even more than twenty five %, warns Alex Mashinsky, founder and CEO of Celsius Network, a crypto asset supervisor.
“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 could fall all the way back to $16,000 before the conclusion of the first quarter.
“This is going to flush the vulnerable hands and transfer the baton with all their BTC from the short-term speculators to the long term institutions and HODLers,” he added.