Bitcoin primarily topped $19,000 in December 2017 before crashing spectacularly to around $3,200 a year later. But long-range buy and hold bitcoin bulls, or HODLers as they’re widely known around crypto circles, are experiencing the last laugh.
That’s because the cost of one bitcoin (XBT) topped over $40,000 Thursday — double the value from a little more than three years ago. Prices later slid back to around $38,000.
The value of all bitcoins in circulation is now over $740 billion and the total value for all cryptocurrencies is a lot more than $1 trillion, according to CoinMarketCap.
Investors have flocked to bitcoin in recent weeks as the cryptocurrency has gone mainstream.
Square (SQ) and PayPal (PYPL)now let their subscribers purchase and sell bitcoin. Top money managers including Paul Tudor Jones, Stanley Druckenmiller — and more recently, Anthony Scaramucci — have embraced it.
Software firm MicroStrategy (MSTR) is already holding bitcoin on the balance sheet of its. And a top exec at BlackRock (BLK), the world’s largest asset manager, recently said bitcoin it’s essentially a brand new, digital gold — an asset that can hold up well during times of dollar weakness and rising inflation.
“It’s not surprising to get bitcoin’s recent run up. It is encouraging to find more serious consideration of bitcoin and the digital currency advantage class broadly, as it’s real potential to reshape worldwide finance as we know it,” said Michael Sonnenshein, CEO of Grayscale Investments, the world’s greatest crypto asset manager, in an email to CNN Business.
Bitcoin's bubble might burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble could very well burst, warns Anthony Scaramucci. But he is still a mega-bull
The bitcoin boom has gone into overdrive this week, with prices soaring roughly twenty five % in just the past 5 days, pressing the cryptocurency previous several milestone quantities.
That’s raising alarm bells while with some bitcoin bulls.
“Market players are actually adopting bitcoin to hedge against instability. But while further development is actually inevitable, investors should not expect this to move in a straight line,” stated Gavin Smith, CEO of Panxora Group, a cryptocurrency consortium, in a contact to CNN Business.
Smith added that bitcoin prices could crash by twenty five % at times and that the cryptocurrency shouldn’t be viewed as a “magic cash tree.”
Bitcoin costs could plunge even further compared to 25 %, warns Alex Mashinsky, founder and CEO of Celsius Network, a crypto asset manager.
“Sooner or later on, the bears are going to accumulate enough pressure to see a correction,” Mashinsky said in an email to CNN Business, adding that bitcoin rates could fall all of the way back again to $16,000 before the end of the first quarter.
“This is going to flush the vulnerable hands and transport the baton with all the BTC of theirs from the temporary speculators to the long run institutions and HODLers,” he added.