The first largest Cryptocurrency Bitcoin hit $19,000 on Tuesday, November 24, for the first time in nearly three years and was just shy touching an all-time high of just under $20,000.
It debuted in 2011 at zero and was last trading at $18,415.
Gain
Bitcoin has gained almost 40% in November alone.
Since January, bitcoin has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers.
Fuelling its blistering rally had been a demand for riskier assets amid unprecedented fiscal and monetary stimulus designed to counter the economic damage of the COVID-19 pandemic, hunger for assets perceived as resistant to inflation and expectations that cryptocurrencies will win mainstream acceptance.
Big dealers
The whale index, which counts addresses or wallets holding at least 1,000 bitcoins, is at an all-time high, said Phil Bonello, research director at digital asset manager Grayscale.
Ethereum
Ethereum, the second largest cryptocurrency, was down slightly after hitting its highest since June 2018 on Monday ahead of an upgrade to its blockchain network that is expected to make it quicker and attract more users.
XRP
The third-largest, XRP, gained 2%, turning positive after soaring almost 40% on Monday to its highest in 2-1/2 years.
Estes Prediction
Estes predicts bitcoin could hit between $100,000 and $288,000 by end-2021 based on a model that utilizes the stock-to-flow ratio measuring the scarcity of commodities like gold.
That model, he said, has a 94% correlation with the price of bitcoin.
Lennard Neo Prediction
Neo forecasts bitcoin to reach $60,000-$80,000 by the end of 2021.
Comment from Chief Investment Officer
“Going from $18,000 to $100,000 in one year is not a stretch. I have seen bitcoin go up 10X, 20X, 30X in a year, So going up 5X is not a big deal”, Brian Estes, chief investment officer at hedge fund Off the Chain Capital
Comment from Citi Technical Analyst
Bitcoin could climb as high as $318,000 by the end of next year, citing its limited supply, ease of movement across borders, and opaque ownership.
Those numbers though are a head-scratcher for Toronto-based Kevin Muir, an independent proprietary trader.
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