Bitcoin on Cusp of All-Time High as Investors Hunt for Yield
Investing.com
Published Feb 05, 2021 03:26PM ET
By Yasin Ebrahim
Investing.com – Bitcoin climbed Friday, putting the popular crypto on the cusp of testing its all-time high as the hunt for yield continues to drive investors further out on the risk spectrum.
Investing.com Bitcoin Index rose 0.2% to $37,587, moving closer to its record high of $41,616.
The move follows strong gains earlier this week for bitcoin as its reputation as a store of value continues to enhance its allure.
But with most institutional investors still on the sidelines, there are ample funds yet to enter the fray. Once that happens, investors will likely take bitcoin beyond its recent highs, experts said.
"In the medium term, investors can expect the price to touch $50,000 to $100,000, with the current bull cycle targeting $300,000 a coin, Florian Grummes, managing director of Midas Touch Consulting, said in an interview with Kitco News. "If Bitcoin does the same thing in the last bull market in 2016 and 2017, we’re going to $320,000 this time."
Grummes added that he doesn’t see bitcoin falling below its previous 2017 high of $20,000, but cautioned the road higher for the cryptocurrency is likely to be paved with uncertainty.
Others, meanwhile, have highlighted evidence of bitcoin's emerging status as a higher-yielding safe-haven than gold as a further reason for optimism.
Grayscale’s Bitcoin Trust has increased close to 700,000 bitcoin, while gold ETFs have dropped to roughly 109 million ounces from 111 million in October 2020.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.