Bitcoin (BTC-USD) surged to a new all-time record above $35,000 (£25,668) on Wednesday morning, just days after crossing the $34,000 mark for the first time.
Bitcoin rose to a high of $35,520.67 in the early hours of Wednesday, extending a record-breaking bull run that began in October. The price remained volatile and bitcoin was down 2.6% to $34,241.25 by mid-morning in London.
Simon Peters, an analyst at investment platform eToro, told Yahoo Finance there was huge demand bitcoin, particularly from institutions.
“Central banks continue to use economic stimulus to keep their economies afloat in the wake of the coronavirus pandemic,” Peters said.
“Many investors in the cryptoasset community see bitcoin as a hedge against inflation. With the US readying its next round of stimulus cheques, the trend of investors buying bitcoin as a way to hedge against inflation is accelerating.”
Analysts at various investment banks have recently pivoted to a more positive view of bitcoin, Peters said.
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Bitcoin has rallied over 200% since early October. Experts feel a correction could be due.
“A dump of bitcoin from larger investors, then we could see the price fall back to the $20,000-23,000 range,” Peters said.
Nigel Green, chief executive of independent financial advisory organisation deVere Group, earlier this week said: “There will be a steady pullback in the all-time record-high Bitcoin prices as many traders, like me, begin profit-taking.
“A dip in prices will then represent an important buying opportunity for investors, as digital currencies — in some or another — are now almost universally widely regarded as the future of money.”
A global poll carried out by deVere Group found that nearly three-quarters of high-net-worth individuals planned to invest in cryptocurrencies before the end of 2022.
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