[ad_1]
Crypto critic and star economist Nouriel Roubini can be changed and an analysis names a seemingly insane price target – all to run on Bitcoin.
More than sparkle and shine? The development of Bitcoin prices currently knows only one direction: up.
Photo: Sacha Steinbach (Keystone)
Bitcoin has been on everyone’s lips again since the fall. The cryptocurrency also reached a new record thanks to the interest of institutional investors. Therefore, the cryptocurrency is likely to remain a problem for investors for the next year.
The best-known cryptocurrency has had an eventful year despite or perhaps because of the corona pandemic. In the spring, the blockchain currency briefly traded below $ 5,000 in the wake of global financial markets. By the time it halved in May, the price was already in the five-digit range. This halving of calculated block remuneration, also known as “halving,” occurs periodically approximately every four years.
Quickly to $ 30,000
At the end of July, a unit cost more than $ 10,000. In mid-December, Bitcoin finally set a new all-time high and surpassed the $ 20,000 mark, which had been missed multiple times. Then things happened in quick succession: After Christmas, the oldest and most important cyber slogan was already heading for the 30,000 mark.
“The rally is currently being driven by private investors who have stocked up on digital buyers over the Christmas holidays because traditional markets had closed their doors,” says Emden Research analyst Timo Emden. The new all-time high on Bitstamp is currently $ 28,264.
High demand
However, this already shows a first difference with the last historical maximum at the beginning of the year 2017/18. The price differences in the larger malls were significantly less than they were then. The second difference: this time, according to market watchers, it was mainly institutional investors who drove the price up.
The demand from professional cryptocurrency investors as a supplement to stocks and currencies is “huge,” summed up Patrick Heusser of Swiss cryptocurrency trader Crypto Broker, summing up the rapid rise.
Citibank has a price target of $ 300,000
Furthermore, the largest investment banks are now becoming more positive towards Bitcoin and are increasingly recognizing the maturation of the cryptocurrency. For example, a technical analysis by Citibank with a price target of more than $ 300,000 caused a stir.
Even previously harsh critics of the crypto currency felt compelled to reflect their opinion in light of Bitcoin’s new strength. Years ago, economist Nouriel Roubini described Bitcoin as the “largest bubble in human history” and the “mother of all fraud.”
Roubini turns around
In an interview in November 2020, Roubini was tempted to say that the crypto currency “may be a partial store of value.” The reason for this referred to the deflationary property created in the Bitcoin code, which limits the amount of Bitcoins.
This shows the approach that could play in the hands of Bitcoin beyond next year. The vast excess of money in the wake of central banks’ Corona aid packages is not only driving long-time Bitcoin fans and central bank skeptics to alternative investments, but also entire companies that, meanwhile , are ready to invest their reserves in Bitcoins as part of a diversification strategy.
Companies invest their wealth in Bitcoin
In July, for example, software company MicroStrategy caused a sensation when it announced that it would invest part of its cash reserves in alternative assets. By September, the company had bought bitcoins worth $ 425 million.
The co-founder of the payment service Square of Twitter, Jack Dorsey, also invested $ 50 million of his cash reserves in Bitcoin. Payment service provider PayPal’s announcement that it would give its own customers access to larger cryptocurrencies also caused a stir. PayPal had previously parted ways with the Facebook Group’s Libra cryptocurrency project.
Pandemic as an accelerator
British historian and economics professor Niall Ferguson even goes a step further and gives reasons that competition between currencies could also shape the development of Bitcoin in the coming years.
First, the pandemic accelerated the advancement of digital applications: “What could have taken 10 years was accomplished in 10 months,” Ferguson wrote in a widely publicized opinion piece.
Second, as a result of the pandemic, the risk of financial surveillance and financial fraud has increased significantly. “Both trends were good for Bitcoin,” said the historian.
According to Ferguson, Bitcoin has long become a type of “digital gold” that offers investors a guaranteed scarcity and high mobility, as well as a low correlation with other asset classes.
