Bitcoin reached an all-time high, surging 12 percent to $23,421, more than triple its value since the start of 2020, CNBC reported on Thursday (Dec. 17), citing crypto market data provider Coin Metrics.
The digital currency soared year-to-date by more than 200 percent, breaking the $20,000 mark on Wednesday (Dec. 16). The previous record was in 2017.
By 7 a.m. EST on Thursday (Dec. 17), Bitcoin’s gains leveled, trading over 9 percent higher at about $22,787.
Bitcoin could reach $318,000 by December 2021, according to Thomas Fitzpatrick, global head of CitiFXTechnicals, Citi’s market-insight product. He compared bitcoin fluctuations to the gold market, which was $20-$35 an ounce for 50 years before starting to surge in 1971.
U.K. asset manager Ruffer told CNBC on Tuesday (Dec. 17) that 2.5 percent of its portfolio is invested in bitcoin “as a small but potent insurance policy against the continuing devaluation of the world’s major currencies.” By the end of November, the company managed $27.6 billion in assets.
“It’s not a surprise to us that bitcoin has hit $20K, but it is a very symbolic threshold to reach at the end of what has been a historic year for bitcoin,” Michael Sonnenshein, managing director of Grayscale Investments, told CNN. “These are just the early days, and we think there’s a lot more runway to go.”
A BlackRock executive said bitcoin can replace gold, per CNN. Square and PayPal are both bitcoin enthusiasts.
“Volumes last week were 70% above the year daily average … suggesting greater participation in this rally than has historically been the case,” James Butterfill, investment strategist at CoinShares, told CNN. “It is worth taking note that investors are beginning to see bitcoin as a viable gold alternative.”
Daniel Gouldman, chief executive officer of the crypto-banking platform operator Ternio, told PYMNTS that PayPal’s endorsement of bitcoin is pushing cryptocurrency into the mainstream. Although there are regulatory issues, it’s important that consumer concerns and corporate uncertainties are addressed, he said.
