The price of Bitcoin hit an all-time high today, priced above $68,000 early this week and investors believe its rise is not over yet, CNBC reports.
The price of the coin went down to about $66,700 at the time of this writing, however, there is still plenty of interested investors keeping an eye on Bitcoin, and they are more enthusiastic about the crypto’s short-term prospects than ever before. But as we have seen a lot of times before it is impossible to know when exactly Bitcoin’s momentum will slow down and start plummeting again.
The New Gold
Analysts suggest rising inflation, caused by government spending and stimulus plans, might be behind the rise of Bitcoin and other cryptos including Ether.
“Over time, will see the value of the dollar decrease, whereas BTC has a fixed limit on the amount of coins which can be made,” Susannah Streeter, from financial services company Hargreaves Lansdown, stated in the UK newspaper The Evening Standard.
So, investors are beginning to treat Bitcoin as if it were gold, an inflation hedge that allows them to hold on to their value long-term.
“Inflation is a big consideration for investors in today’s market, and younger investors usually favor crypto as a hedge over gold,” Wilfred Daye, the head of the trading platform Securitize Capital, told The Guardian.
Wall Street is also thinking the trend will continue, with JPMorgan doubling down on its own prediction that Bitcoin will likely rise to a whopping $146,000, according to CNBC.
It is not just finance people who are excited, either. The CEO of Twitter Jack Dorsey called for BTC to be the “native currency for the internet” during an investors call this past week.
The cryptocurrency is also about to get its first upgrade in four years, called Taproot. The technology allows transactions to access a new level of efficiency and privacy, laying the groundwork for the “smart contracts” made popular by Ethereum.
It remains to be seen how much headroom is still there for the value of Bitcoin. But as inflation is expected to keep rising, we might see the cryptocurrency keep rallying in the upcoming months.
Author: Scott Dowdy