The world’s most popular cryptocurrency jumped to an all-time high above $54,000, setting it on course for a weekly jump of more than 11 percent.It has surged roughly 64 percent so far this month and was last up 5.5 percent at $54,405.
Bitcoin’s gains have been fueled by signs it is gaining acceptance among mainstream investors and companies, from Tesla and Mastercard to BNY Mellon.
All digital coins combined have a market cap of around $1.7 trillion.
© Provided by Daily Mail The world’s most popular cryptocurrency jumped to an all-time high above $54,000 on Friday, setting it on course for a weekly jump of more than 11 percent © Provided by Daily Mail Tesla CEO Elon Musk said on Thursday that bitcoin is ‘less dumb’ than holding cash ‘If you really believe there’s a store of value in bitcoin, then there’s still a lot of upside,’ said John Wu, president of AVA Labs, an open-source platform for creating financial applications using blockchain technology.
‘If you look at gold, it has a market cap $9 or $10 trillion.Even if bitcoin gets to half of gold’s market cap, that still growth of 4X, or $200,000.So I don’t know when it stops rising,’ he added.
Still, many analysts and investors remain skeptical of the patchily regulated and highly volatile digital asset, which is little used for commerce.
Analysts at JP Morgan said bitcoin’s current prices were well above estimates of fair value.
Mainstream adoption increases bitcoin’s correlation with cyclical assets, which rise and fall with economic changes, in turn reducing benefits of diversifying into crypto, the investment bank said in a memo.
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Bloomberg Click to expand Replay Video Peterffy: Markets Were ‘Frighteningly Close’ to Collapse Amid GameStop Turmoil Feb.18 — Interactive Brokers Group Inc.Chairman Thomas Peterffy says financial markets came “frighteningly close” to collapsing during last month’s Reddit-driven turmoil.He speaks on “Bloomberg The Open.” Bloomberg Vaccinations Provide a Movement Toward Normalcy: Johns Hopkins Feb.18 — Johns Hopkins University Professor of Nursing Jason Farley discusses declining hospitalizations in the U.S.
and the level of protection provided by vaccines against Covid-19 variants.He speaks on “Bloomberg Surveillance.” The Bloomberg School of Public Health is supported by Michael R.Bloomberg, founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.Bloomberg GameStop Hearing Gathers Citadel, Robinhood Execs on Markets Feb.18 — Robinhood Markets Chief Executive Officer Vlad Tenev and Citadel founder Ken Griffin will face lawmakers on Capitol Hill Thursday, focused on fighting conspiracy theories about their roles in the GameStop retail trading frenzy.Bloomberg’s Dani Burger reports on “Bloomberg Surveillance Early Edition.” Bloomberg UP NEXT ‘Crypto assets continue to rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits at prices so far above production costs, while correlations with cyclical assets are rising as crypto ownership is mainstreamed,’ JP Morgan said.
© Provided by Daily Mail Analysts at JP Morgan said bitcoin’s current prices were well above estimates of fair value Bitcoin is an ‘economic side show,’ it added, calling innovation in financial technology and the growth of digital platforms into credit and payments ‘the real financial transformational story of the COVID-19 era.’
Other investors this week said bitcoin’s volatility presents a hurdle for it to become a widespread means of payment.
On Thursday, Tesla boss Elon Musk – whose tweets have fueled bitcoin’s rally – said owning the digital coin was only a little better than holding cash.
‘However, when fiat currency has negative real interest, only a fool wouldn’t look elsewhere,’ Musk said in a tweet.’Bitcoin is almost as bs as fiat money.
The key word is ‘almost’.’
He also defended Tesla’s recent purchase of $1.5 billion of bitcoin, which ignited mainstream interest in the digital currency.
‘Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company,’ Musk tweeted.
© Provided by Daily Mail © Provided by Daily Mail Tesla’s $1.5 billion bitcoin purchase set the cryptocurrency soaring toward this week’s record peak above $50,000 while Musk’s recent promotion of dogecoin on Twitter also lifted the price of that cryptocurrency.
Bitcoin proponents argue the cryptocurrency is ‘digital gold’ that can hedge against the risk of inflation sparked by massive central bank and government stimulus packages designed to counter COVID-19.
Yet bitcoin would need to rise to $146,000 in the long-term for its market cap to equal the total private-sector investment in gold via exchange-traded funds or bars and coins, according to JP Morgan.
Rival cryptocurrency ether traded down 0.3 percent, at $1,934.67, still near a record of $1,951 reached earlier on Friday.It has been lifted by growing institutional interest, after its futures were launched on the Chicago Mercantile Exchange.
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