Bitcoin is a digital competitor to gold: The investment bank, JP Morgan, indicated that the digital currency Bitcoin has emerged as a competitor to gold, and may trade at levels up to $ 146,000 if it is established as a safe investment asset.
Interest in the world’s largest cryptocurrency has increased in the new year as investors view Bitcoin as a hedge against inflation and an alternative to the depreciation of the dollar.
The demand for the digital currency has led to a rise in its prices, by more than three times in the past six months, to a record high of $ 34,800 on the second of January.
Economists at JP Morgan said, “We are starting to take into account Bitcoin’s competition for gold.”
This could herald a new dawn for the volatile digital currency, after its circulation for years was restricted to speculators and retail investors.
Although JPMorgan believes that the chances of this “current speculative mania” pushing the digital currency to a level between $ 50,000 and $ 100,000, he cautions that these levels will turn out to be unsustainable until volatility levels stabilize.
The bank said: “We note that the staggering rise of the Bitcoin currency in the past few weeks has pushed it into a region with more challenges, not only in terms of its status but also in terms of its value.”
For the first time in its history, the “Bitcoin” currency exceeds the threshold of 35 thousand dollars
Bitcoin rose in trading in Asia above $ 35,000 for the first time, today, Wednesday 6/1/2021, to reach a high of $ 35,879, and a continuing rally that has pushed the digital currency to jump by more than 800 percent since mid-March.
The world’s most popular digital currency surpassed the $ 20,000 level for the first time ever on March 16.
2021 is the year of cryptocurrencies
In the same context, analysts believe that the Bitcoin currency during 2020 was in a state of dispersion, but it received a push from large investors by converting their assets to the cryptocurrency, while technology companies such as Square and Micro Strategy used their balance sheets to buy bitcoin.
“This is the domino effect as asset managers flip their portfolios into bitcoin,” said Crypto Compare CEO Charles Hayter.
The CEO and co-founder of the online investment platform eToro says that $ 35,000 is undoubtedly a milestone for Bitcoin, we have witnessed a major shift in the demographics of those interested and investing in cryptocurrencies. It is no longer the domain of only computer programmers and fintech advocates.