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Bitcoin is back and it just soared past $17,000
Bitcoin reached $17,000 for the first time since just after the burst of the cryptocurrency bubble almost three years ago.
The largest digital coin, which has more than doubled this year, surged as much as 6.2% to $17,732 on Tuesday in New York trading. From an all-time high in December 2017 of nearly $20,000, Bitcoin tumbled to as low as $3,136 within a year.
“Demand for more diverse, stable products that take less risk is proof that the rally is driven largely by sophisticated players using them to hedge against the downside for underlying holdings, rather than the pump and dump, 100x rekt trades we saw three years ago,” said Denis Vinokourov, head of research at Bequant, a London-based digital asset firm. “Bitcoin may even go parabolic in a super charged rally past $20,000 as we approach the Thanksgiving holiday.”
Its gains this year follow a wider embrace from Wall Street linchpins, including Fidelity Investments, which launched a Bitcoin fund over the summer. Some prominent money managers also became crypto converts, with macro investor Paul Tudor Jones buying the coin as a hedge against potential inflation. And PayPal Holding Inc. said in October it would allow customers to access cryptocurrencies, which spurred bets more people could start to use digital tokens.
Crypto fans have been watching Bitcoin tick higher all year, with many setting their sights on 2017’s record, while others are targeting even higher levels.
“Bitcoin has consistently been one of the world’s top-performing assets since its creation,” said Mati Greenspan, founder of Quantum Economics. “This latest surge comes as larger players enter the market sapping up what little supply remains for sale.”
While some die-hard crypto fans have stuck with it through its ups and downs, others have become newly enchanted by it amid the pandemic. Bitcoin this week got a star-power boost when Maisie Williams, the actress who portrayed Arya Stark in HBO’s “Game of Thrones,” asked her 2.7 million Twitter followers whether she should invest in the coin. The inquiry prompted answers from noted crypto investor Mike Novogratz as well as Tesla Inc.’s Elon Musk.
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