Bitcoin primarily 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 are widely known around crypto circles, are having the final laugh.
That’s since the cost of one bitcoin (XBT) topped over $40,000 Thursday — double the value from a bit more than 3 years back. Prices 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, according to 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 as well as advertise bitcoin. Leading money managers including 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 high exec at BlackRock (BLK), the world’s largest asset manager, recently claimed bitcoin is fundamentally a brand new, digital gold — an asset that could hold up nicely during times of dollar weakness and rising inflation.
“It’s not surprising to get bitcoin’s the latest run up. It’s encouraging to see much more serious consideration of bitcoin and the digital currency advantage class broadly, since it has real potential to reshape global finance as we know it,” said Michael Sonnenshein, CEO of Grayscale Investments, the world’s greatest crypto asset supervisor, in a contact to CNN Business.
Bitcoin's bubble could very well burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble might burst, warns Anthony Scaramucci. however, he’s still a mega-bull
The bitcoin boom has gone into overdrive this week, with prices soaring nearly 25 % in only the past five days, pushing the cryptocurency past multiple milestone levels.
That is increasing alarm bells while with some bitcoin bulls.
“Market players are actually adopting bitcoin to hedge against instability. But while additional development is actually 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 prices can crash by 25 % at times and that the cryptocurrency should not be considered a “magic cash tree.”
Bitcoin price tags could plunge even more compared to 25 %, warns Alex Mashinsky, founder and CEO of Celsius Network, a crypto resource supervisor.
“Sooner or even later on, the bears will accumulate a lot of pressure to see a correction,” Mashinsky said in an email to CNN Business, adding that bitcoin prices can fall all the way back again to $16,000 before the end of the earliest quarter.
“This is going to flush the weak hands and transfer the baton with all their BTC from the short term speculators to the long term institutions and HODLers,” he added.