Bitcoin tops $40,000
Updated: Feb 13
Why Is Bitcoin Going Up, and Will It Crash Soon? Sell or Buy?
Bitcoin’s prices reached all-time highs above $40,000 less than a month after breaking $20,000 for the first time. Since the start of the most recent rally, ostensibly begun in October, its value has increased fourfold.
“Bitcoin tops USD$40,000 for first time, pushing cryptocurrency market value past USD$1 trillion.”
Many bitcoin bulls say the cryptocurrency is akin to “digital gold,” a potential safe haven asset and a hedge against inflation. According to JP Morgan, bitcoin could hit $146,000 in the long term as it competes with gold as an “alternative” currency. The investment bank’s strategists noted that bitcoin would have to become substantially less volatile to reach this price, however. Bitcoin is known for wild price swings.
The idea of bitcoin as a hedge against inflation has continued to gain steam as governments around the world embark on large-scale fiscal stimulus programs. Analysts argue this could cause a spike in inflation.
The cryptocurrency’s price is notoriously volatile, and substantial and unexpected price swings aren’t uncommon. But some bitcoin critics — such as David Rosenberg, economist and strategist at Rosenberg Research — have called bitcoin a bubble.
Do you think Bitcoin still a bubble?