Bitcoin initially topped $19,000 in December 2017 before crashing spectacularly to around $3,200 a year later. But long-term buy and then hold bitcoin bulls, or maybe HODLers as they’re known around crypto circles, are experiencing the last laugh.
That’s because the cost of one bitcoin (XBT) topped more than $40,000 Thursday — double the value from a little more than 3 years back. Prices later slid back to around $38,000.
The value of all bitcoins in circulation is currently over $740 billion and the total value for all cryptocurrencies is much more than one dolars 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 like 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 premier exec at BlackRock (BLK), the world’s largest asset manager, recently reported bitcoin is basically a new, digital gold — an asset that could hold up nicely during times of rising inflation and dollar weakness.
“It’s not shocking to see bitcoin’s the latest run up. It’s encouraging to find a lot more serious consideration of bitcoin and the digital currency advantage class broadly, as it has real potential to reshape global finance as we know it,” said Michael Sonnenshein, CEO of Grayscale Investments, the world’s biggest crypto asset manager, in a contact to CNN Business.
Bitcoin's bubble could very well burst, warns Anthony Scaramucci. But he's still a mega-bull
Bitcoin’s bubble might burst, warns Anthony Scaramucci. But he’s still a mega-bull
The bitcoin boom has gone into overdrive this week, with prices soaring roughly 25 % in only the past 5 days, pushing the cryptocurency past many milestone levels.
That is increasing alarm bells even among some bitcoin bulls.
“Market players are actually adopting bitcoin to hedge against instability. But while additional development is inevitable, investors should not expect this to move in a straight line,” said Gavin Smith, CEO of Panxora Group, a cryptocurrency consortium, in a contact to CNN Business.
Smith added that bitcoin prices can crash by 25 % at times and that the cryptocurrency should not be considered a “magic cash tree.”
Bitcoin prices could plunge further compared to twenty five %, warns Alex Mashinsky, founder and CEO of Celsius Network, a crypto resource manager.
“Sooner or perhaps later, the bears are going to accumulate a lot of pressure to see a correction,” Mashinsky said in an email to CNN Business, adding that bitcoin prices can fall all of the way back to $16,000 before the conclusion of the very first quarter.
“This is going to flush the vulnerable hands and transfer the baton with all their BTC from the short-term speculators to the future institutions and HODLers,” he added.