Blockchain, Cryptocurrency, Bitcoin

Bitcoin surged Monday to a new all-time-high price of $19,864, extending its year-to-date rise to an astounding 170% during a 2020 that has seen tumultuous swings in global markets.

Here are five reasons why the oldest and largest cryptocurrency has pushed to new highs.

1) Some institutional investors are taking on bitcoin exposure, such as buying into the publicly traded Grayscale Bitcoin Trust (stock ticker GBTC), according to a Nov. 20 report from analysts at JPMorgan Chase. (Note: Grayscale is a unit of Digital Currency Group, which owns CoinDesk.) Guggenheim, a money manager that oversees $233 billion for investors, said in regulatory filings that its Macro Opportunities Fund might allocate up to 10% of net assets to GBTC, CoinDesk reported Nov. 28. As well, the outstanding number of bitcoin futures contracts is surging on the Chicago Mercantile Exchange, seen as another sign that big investors are using commodities markets to speculate on the cryptocurrency’s price, according to the JPMorgan report.

2) Well-known hedge fund managers are increasingly calling bitcoin a long-term investment. Legendary managers, including Paul Tudor Jones II and Stanley Druckenmiller, have recently said that the cryptocurrency’s price, as denominated in U.S. dollars, could rise as the Federal Reserve prints money to help finance the government’s coronavirus-related emergency stimulus bills. The central bank has thus far created more than $3 trillion of new money in 2020, or more than three quarters of the entire amount created during its prior 107-year history.

3) Wall Street analysts have made positive comments over the past few days. AllianceBernstein, a $631 billion money manager, published a report saying that the post-pandemic economic environment could create a role for bitcoin in investors’ asset allocation, CoinDesk reported Monday. Inigo Fraser Jenkins, co-head of the portfolio strategy team at Bernstein Research, wrote that when it comes to a role in hedging against inflation, “the driver of bitcoin is similar to that as for gold.â€

4) PayPal is allowing customers – some 346 million active accounts – to buy bitcoin. The person-to-person payments network announced Oct. 21 it would let customers buy, sell and hold bitcoin. According to the company, the cryptocurrency will become a “funding source for purchases at its 26 million merchants worldwide.â€

5) The bitcoin market last week overcame a major source of concern – bitcoin outflows from one of the world’s biggest cryptocurrency exchanges, OKEx. Some traders and analysts had speculated that the end of a five-week suspension of withdrawals might translate to liquidations that could put sell pressure on the bitcoin market. And data extracted from the cryptocurrency’s underlying blockchain network showed that some 24,631 bitcoin, worth $500 million at current prices, flowed out of the exchange in the 24 hours after the suspension was lifted last week. But bitcoin price action shows that the market shrugged off the news, along with other negative developments, such as rumors that the U.S. Treasury Department might be considering onerous cryptocurrency regulations. Traders also appeared to ignore data showing that some large bitcoin traders – known as “whales†– might be preparing to dump their holdings in response to the cryptocurrency’s price rise.

RELATED NEWS

A Crypto-Infused Professional Sports League: Billionaires Form a Blockchain Advisory Committee for the NBA

A number of National Basketball Association (NBA) team owners have formed an NBA blockchain advisory committee for the American professional basketball league. The advisory committee is composed of well known billionaires and blockchain advocates who own the teams the Nets, Mavs, Wizards, Celtics, Kings, and Jazz. Billionaire NBA Team Owners Invoke a Blockchain Advisory Committee […]

Xem chi tiết: A Crypto-Infused Professional Sports League: Billionaires Form a Blockchain Advisory Committee for the NBA

The Many Facts Pointing to Cypherpunk Len Sassaman Being Satoshi Nakamoto

Satoshi Nakamoto, the creator of Bitcoin, has always been a mysterious character and a great number of sleuths have made it their mission to discover the inventor’s identity. One particular theory was published this month which attempts to tether the well known and now deceased, Len Sassaman to the creation of the first cryptocurrency. Moreover, […]

Xem chi tiết: The Many Facts Pointing to Cypherpunk Len Sassaman Being Satoshi Nakamoto

John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

Tech entrepreneur and former anti-virus tycoon John McAfee has been indicted by the U.S. Department of Justice (DoJ) on money laundering and fraud charges. The United States Attorney for the Southern District of New York and the FBI unsealed the indictment charging McAfee and his associate Jimmy Watson with securities fraud. John McAfee Indicted by […]

Xem chi tiết: John McAfee Indicted by DOJ Over Alleged Cryptocurrency Fraud Charges

$1 Million per BTC in 10 Years: ‘In Terms of Dollars Bitcoin Is Going to Infinity,’ Says Kraken CEO

While bitcoin prices have been coasting along between $46k to $48k during the last three days a number of proponents are still bullish about the crypto asset’s long-term value. On Thursday, Kraken CEO Jesse Powell said that he thinks bitcoin could easily reach a million-dollar valuation per coin. “When you measure it in terms of […]

Xem chi tiết: $1 Million per BTC in 10 Years: ‘In Terms of Dollars Bitcoin Is Going to Infinity,’ Says Kraken CEO

‘The Fed Is Trapped’- Erratic Bond Markets, Exhausted Supplies, Analyst Says Tsunami of Treasury Issuances Underway

The U.S. Federal Reserve is in a predicament as fiscal deficits erode the American economy and the nation is seeing a spike in benchmark 10-year Treasury yields. Meanwhile, Federal Reserve Chairman Jerome Powell expressed zero worries about inflation during an interview at a Wall Street Journal Jobs Summit on Thursday. Powell didn’t explain when the […]

Xem chi tiết: ‘The Fed Is Trapped’- Erratic Bond Markets, Exhausted Supplies, Analyst Says Tsunami of Treasury Issuances Underway

Polkadot’s Gavin Wood to Give Lecture Series as Part of UC Berkeley Blockchain Curriculum

University of California, Berkeley and Parity Technologies are joining forces on several blockchain fronts, including educational development and awareness, by leveraging Parity’s expert team and the Substrate framework as knowledge-building resources. UC Berkeley Blockchain Xcelerator Partners with Parity to Promote Blockchain Adoption To bring more resources to the University of California, Berkeley community and Blockchain […]

Xem chi tiết: Polkadot’s Gavin Wood to Give Lecture Series as Part of UC Berkeley Blockchain Curriculum

Kentucky Pushes Mining Tax-Breaks in Bid to Attract Crypto Community

The Kentucky House Budget Committee approved a bill in a 19-2 vote to eliminate the sales tax on electricity for use in cryptocurrency mining operations. The bill, designed to attract more miners to the state, is now in the Kentucky Senate for review. Lawmakers Urge Greater Crypto Appeal Despite Purported Costs Motivated by the explosive […]

Xem chi tiết: Kentucky Pushes Mining Tax-Breaks in Bid to Attract Crypto Community

The Many Facts Pointing to Cypherpunk Len Sassaman Being Satoshi Nakamoto

Satoshi Nakamoto, the creator of Bitcoin, has always been a mysterious character and a great number of sleuths have made it their mission to discover the inventor’s identity. One particular theory was published this month which attempts to tether the well known and now deceased, Len Sassaman to the creation of the first cryptocurrency. Moreover, […]

Xem chi tiết: The Many Facts Pointing to Cypherpunk Len Sassaman Being Satoshi Nakamoto

A Step-by-Step Guide to Creating and Selling Non-Fungible Tokens Built With Bitcoin Cash

Bitcoin to Reach $100K to $288K in 2021? Stock-to-Flow Models Suggest It Could

An Iranian Think Tank Recommends the Use of Cryptocurrencies to Circumvent Sanctions

Tezos Ties-Up with Wolfram Blockchain Labs to Simplify Smart Contract Deployment

The Largest US Options Exchange Cboe Applies to List Vaneck’s Bitcoin ETF

20 Bitcoin Block Rewards from 2010 Moved Today, Mystery Miner Spent $400 Million in BTC Since Black Thursday

Crypto Markets Regain Billions, Bitcoin Price Bounces Back 15%, Analyst Says ‘Resurgent Mood In the Air’

BTC Balance Sheets: 42 Companies Hold 1.3 Million Bitcoin Worth More Than $65 Billion