For the first time in the history of Bitcoin, the $20,000 mark has been passed. This controversial digital asset has set another amazing milestone this year.
Bitcoin rose 7.6% to $20,893 during the New York session on Wednesday. The bold forecast that was mocked a few months ago became a reality and prompted the market to give higher expectations for Bitcoin. This year, Bitcoin has almost tripled.
Antoni Trenchev, co-founder and managing partner of Nexo, a cryptocurrency financial institution, said, “We have a new watershed, and the next target integer mark is 30,000 US dollars. This is the beginning of a new chapter for Bitcoin. Media and retail investors can be appropriate. Participate in it because they are obviously absent from this rising feast.”
Affected by the new crown epidemic, Bitcoin plummeted in March by as much as 25% but later reversed its decline. Proponents realize that Bitcoin can be used as a means of storing wealth in a situation where inflation is still low and the central bank is printing a lot of money.
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In addition, some Wall Street companies have also become more interested in Bitcoin, and many companies are trying to profit from rising Bitcoin in a low-interest-rate environment. For example, Guggenheim Partners LLC recently stated that it may invest up to 10% of its $5.3 billion macro opportunity fund in a Bitcoin trust.
QMA portfolio manager and managing director Ed Campbell said: “People tend to flock to momentum trading, so Bitcoin may have more room for upside.”
Other cryptocurrencies also rose on Wednesday. The Bloomberg Galaxy Cryptocurrency Index, which tracks some major cryptocurrencies, rose by as much as 7.2%, and Dash and Litecoin both rose at least 6%. Ether, the second-largest electronic asset after Bitcoin, rose 6.9%.
Meltem Demirors, chief strategy officer at CoinShares, said that Bitcoin’s passing the $20,000 mark is an important psychological milestone.
She said on the phone, “The most important macroeconomic environment at present has created perfect conditions for Bitcoin to take off. From now on, the upward speed will be very fast. Even if it reaches 35,000 US dollars within 3 to 6 months, I will not be surprised. “.
