Cryptocurrency: Bitcoin extends rally to all-time high nearly $50,000

*Reports indicate Bitcoin, the world’s largest cryptocurrency, continues to extend its breathtaking rally, as the token has outperformed assets including stocks, gold and commodities

Alexander Davis | ConsumerConnect

Even as a debate continues about whether the token has any intrinsic value at all, amid warnings by central bankers and experts, that investors could be left with big losses because cryptocurrencies remain highly speculative, Bitcoin has reached another record, inching closer to $50,000.

It was learnt that Bitcoin, the world’s largest cryptocurrency, has continued to extend its breathtaking rally.

The token climbed as much as 3.6% to $49,913 in Asian trading Tuesday, February 16, according to a composite of prices compiled by Bloomberg.

Prices fell back later in the session and were last trading around $49,000.

Bitcoin’s volatile, fivefold advance over the past year towers above the returns from more traditional investments like stocks, gold and commodities.

The ascent has been buoyed by the widening adoption of the cryptocurrency, most notably Tesla Inc.’s disclosure this month of a $1.5 billion purchase.

Yet, a debate continues about whether the token has any intrinsic value at all, amid warnings that investors could be left with big losses because cryptocurrencies remain highly speculative, report noted.

Mike McGlone, a commodity strategist at Bloomberg Intelligence, said: “Bitcoin volatility is likely to continue rising in the near term and remain elevated until it settles in around its next plateau,” adding that $100,000 may be a longer term target.

As Bitcoin scales fresh peak, knocks on door of $50,000, a flurry of recent announcements indicates that Bitcoin is winning more mainstream attention, after Tesla’s purchase catapulted cryptocurrencies onto the agenda of corporate treasurers worldwide, according to report.

It was gathered that an investment unit of Morgan Stanley, for instance, is considering whether to bet on Bitcoin.

In Canada, officials approved the first North American Bitcoin exchange-traded fund.

BNY Mellon has said it’s formed a new team that’s developing a custody and administration platform for traditional and digital assets.

Mastercard Inc. plans to allow cardholders to transact in certain cryptocurrencies on its network.

Jehan Chu, Managing Partner with blockchain advisory firm Kenetic Capital, in Hong Kong, stated the growing interest in Bitcoin was “set ablaze” by Tesla’s move.

On volatility, digital tokens had already caught the attention of hedge fund moguls, including Alan Howard and Paul Tudor Jones.

On one ‘disputed narrative’, Bitcoin is a kind of digital bullion that provides a store of value as well as a hedge for risks such as faster inflation.

That’s in part because it’s designed to have a fixed supply of 21 million coins, report said.

However, amid the hype, there continue to be warnings that cryptocurrencies are prone to wild price swings, deployed for illicit transactions and exposed to tightening regulations, storing up a lot of risk.

Antoni Trenchev, Managing Partner and Co-Founder of Nexo, one of the biggest crypto lenders, in London, said: “It’s important to remember that Bitcoin never moves up in a straight line.

“Short-term volatility is very much a feature of this bull market and investors should prepare accordingly.”

Kindly Share This Story