Weekend rally sees Bitcoin hit fresh highs

04 Jan 2021

Bitcoin reached highs of $33,365 in Asia on Monday, after surging to all-time highs on Sunday of $34,800.

However, it fell to around $29,000 by mid-morning in London.

This latest milestone for the world’s largest cryptocurrency by market capitalisation came less than three weeks after it hit the $20,000 mark for the first time on 16 December.

As it stands, Bitcoin has now surged around 800% since the middle of March, Reuters reports.

With the supply of Bitcoin capped at 21 million, it is viewed as a hedge against inflation and also a safe haven during the coronavirus crisis, similar to gold.

Bank of Singapore currency analyst Moh Siong Sim said of this recent Bitcoin rally: “Some of it is reflecting the fear of a weaker dollar.

“It seems like people are preferring Bitcoin as an expression of concern over currency debasement, relative to gold.”

This was echoed by deVere CEO Nigel Green, who said recently that investors are looking to Bitcoin as a hedge against a “legitimate inflation concern.”

He added that the world’s biggest institutions, including multinational payment companies and Wall Street giants, are piling “ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest.”

Mr Green also said that cryptocurrencies are “borderless, making them perfectly suited to a globalised world of commerce, trade, and people” that they are digital, “making them an ideal match to the increasing digitalization of our world.”

In addition, as per a Yahoo Finance report, Naeem Aslam, chief market analyst at AvaTrade, said that the rally wasn’t just reported in Bitcoin, but also Ethereum, the second largest cryptocurrency by market capitalisation, which surpassed the $1,100 mark over the weekend.

“The spike in the Ethereum price is extraordinary, and traders need to be mindful that a correction is looming. Overall, the sentiment among the crypto community is still positive, and the main theme is the short squeeze,” he stated.