While enthusiasts and traditional investors debate the points and reasons for buying cryptocurrency, the price of the most well-known cryptocurrency bitcoin rises above $17,000, sprinting towards a historical record.
On Tuesday alone, Bitcoin rose almost 6% to below $17,700, up more than 30% since early November.
These are prices that haven’t been seen in this dominant cryptocurrency since early 2018, and the current price is about 15% lower than the historic high of nearly $20,000 in December 2017.
Ben Zhou leads the derivatives exchange Bybit and compares bitcoin’s “great bullish” to the rise of 2017.
“You can see that there is very little resistance to the price of bitcoin,” he told the industry website Coin Desk.
He points out the important difference between the larger institutions trading bitcoin at the time and the “inflow of institutional funds”, which is not the individual holding the funds.
-The gap between the world of cryptocurrency and traditional financial institutions has been greatly reduced. As a result, existing players now believe that trading in this market is perfect. Charles Hayter of CryptoBeer, a cryptocurrency data distributor, said Charles Hayter of CNBC and Cryptocompare.
Not only hobbyists, but also many other investors are starting to compare cryptocurrencies with traditionally safe and less risky assets like gold. And the price of cryptocurrency started to fluctuate more and more according to this. And it’s contrary to the willingness to take risks elsewhere in the market.
It has also contributed positively that many of the famous investors such as Paul Tudoer Jones and Stanley Druckenmiller have started trading cryptocurrencies, according to CNBC. In addition, Fidelity, for example, a giant fund manager, has now set up a so-called trading desk to trade cryptocurrencies.
Anyone without threats is Ray Dalio, an almost legendary hedge fund manager, investor and billionaire.
On the exchange of messaging service Twitter, he wonders about the rise of cryptocurrency.
-Here may be something you don’t understand about bitcoin, so we’re happy to fix it. He writes:
- Bitcoin is not very good as a payment method as there are very few things you can buy.
- It is not a good investment asset because it is highly volatile and there is little change in the price I have to buy.
- If it succeeds so well that it competes with and threatens existing currencies and is too dangerous to use, it is banned by the authorities.
- He doesn’t think central banks, large institutional investors, corporations or multinational corporations will use it.
-If I make a mistake, I’ll be happy to correct it. Thank you very much.
Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund in 2013. He is estimated to have a fortune of $15.5 billion and is ranked 119th on Bloomberg’s billionaire rating. Dalio has published several best-selling books, including the US debt crisis.
In particular, buyers in North America are raising bitcoin prices, but trading volumes are relatively low.
It is subject to change in November, when the major trading platform B2C2 reported that the trading volume for the first half of November was full-scale in October.
Coin Desk points out that other cryptocurrencies are also on the rise.(hatchet)Copyright Dagens Næringsliv AS and/or our suppliers. We hope to share your case using a direct link to our page. Copying or other use of all or part of the content is possible only with written permission or as permitted by law. See additional terms here.