Bitcoin rose Wednesday to hit a new record high ever witnessed, as the largest cryptocurrency continues to trade in wild swings and volatility.
The price of bitcoin was at once trading at more than $ 35,000 early Wednesday morning, according to data from Coin Metrics. Later it pared the gains a little, trading 1% more than 34,275.
Where Is BTC Heading Towards?
The latest rise in Bitcoin comes just days after falling by more than 10% to $ 29,316. That followed a jump of more than 300% by 2020 to levels above $ 29,000.
On Monday, JPMorgan published a note on the long-term price of bitcoin, saying cryptocurrency could rise to $ 146,000 as it competes with gold as a “separate” or ‘alternative’ currency. Precious metals have also seen huge gains in 2020, with rising gold prices at the spot level by about 25% a year.
Anthony Scaramucci, founder and co-founder of SkyBridge Capital, also told CNBC’s “Capital Connection” on Wednesday that his company had “strong bullish sentiment status” in the bitcoin value (store) and saw it “replacing” gold.
Cause Of The Rally
Scaramucci, a former communications director at the White House, added that Democratic control of Congress would be “good” for cryptocurrencies due to the expectation of “tremendous” money printing under a federal government controlled by the party.
JPMorgan’s strategists, however, say that bitcoin will need to fall sharplyin terms of its market volatility before it can match gold in market value. The price of digital currency is known to pass through the wild swings of market volatility.
The call of a major investment banker has been marked by a recent comment by CEO Jamie Dimon about bitcoin. Demon once called cryptocurrency a “fraud.”
Meanwhile, PwC global cryto leader Henri Arslanian told CNBC’s “Street Signs Asia” on Monday that the recent rise in bitcoin recording rates was partly due to the influx of large, institutional investors into the market.
Bitcoin bulls have hailed the virtual currency as an inflation hedge similar to gold in the face of unprecedented government stimulus aimed at tackling the coronavirus pandemic. Skeptics see it as a speculative asset with no intrinsic value and a market bubble that is likely to burst at some point.
- The price of bitcoin rallied to trade above $35,000 early Wednesday morning, according to data from Coin Metrics.
- Bitcoin’s latest all-time high comes after a sharp slump Monday and builds on a more than 300% surge in 2020.