Bitcoin hits three-year high as investors jump in

[BountyManagerBD]

Bitcoin, the world's best-known cryptocurrency, has jumped above $17,000 (£12,800) to hit a three-year high.

The digital currency has suffered plenty of wild price swings since it was launched in 2009.

But investors have been flocking to cryptocurrencies during the pandemic-driven volatility on global stock markets.

However, experts have cautioned about viewing them as a "safe haven".

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On Wednesday, Bitcoin had climbed more than 7% to $17,891, its highest level since December 2017.

Some analysts said the Covid-19 pandemic has encouraged investors to reassess the long-term outlook for Bitcoin and other cryptocurrencies.

But there are still concerns about the fraudulent trading in cryptocurrencies following a succession of high-profile hacks.

'Bouncing like a yo-yo'
During times of volatility, investors tend to move their money out of shares and into what are considered safer havens, like cash and gold.

Some feel cryptocurrencies are now being viewed as a shelter from stock market volatility.

"Covid-19 has disrupted the traditional safe-haven trade and gold's inability to outperform. Periods of extreme risk aversion have forced many traders to diversify into Bitcoin," said Edward Moya, at trading firm Oanda.

One attraction of Bitcoin is its limited supply, which is capped at 21 million.

Some feel this scarcity provides an innate value and shields Bitcoin from inflation, which is becoming a worry.

But Shane Oliver, head of investment strategy and chief economist at AMP Capital, warned about jumping into Bitcoin.

"Its huge volatility hardly makes it a safe haven as a store of value. I have far more confidence in the $50 note in my wallet retaining its value over time than Bitcoin, which seems to bounce around like a yo-yo."

Going mainstream
Last month, PayPal announced that its customers will be able to buy, sell and hold Bitcoin and cryptocurrencies using their PayPal accounts, allowing customers to buy things from the 26 million sellers which accept PayPal, it said.

Next year, PayPal plans to allow cryptocurrency to be used as a funding source.

But Oanda's Mr Moya warned traders to prepare for more volatility.

"The amount of hedge funds and high-frequency trading systems driving Bitcoin higher will likely deliver exaggerated moves once its price nears the $20,000 level," he added. "Traders need to expect $1,000 swings in a matter of minutes.

Source: https://www.bbc.com/news/business-54982604

[jossiel]

Don't forget to put the source's link where you have copied the article. Always include the original owner of that article where it came from.

Source: https://www.bbc.com/news/business-54982604

[romero121]

For most businesses and stocks it is a bad year due to the pandemic. People had the same thinking for bitcoin when the covid-19 spread began. Further the market encountered good growth and the same is continuing. This has caused the price to reach new ath in the past three years of time.

Big investment from institutions were stated the reason for the market bounce. Hope this growth gets carried forward, and now the prime focus of the users were the price correction. Once after the correction we can get an clear view on the direction of move.

[jademaxsuy]

For most businesses and stocks it is a bad year due to the pandemic. People had the same thinking for bitcoin when the covid-19 spread began. Further the market encountered good growth and the same is continuing. This has caused the price to reach new ath in the past three years of time.

Big investment from institutions were stated the reason for the market bounce. Hope this growth gets carried forward, and now the prime focus of the users were the price correction. Once after the correction we can get an clear view on the direction of move.

This is why it is good to make bitcoin as reserve or back up money in their business. This to ensure the savings or profits can beat the inflation rate through bitcoin. Other establishment had been doing it already and we can expect the bullish trend now with bitcoin could break the record of the previous ATH on 2017. Hopefully bitcoin will do more good in the future as many people will going to grasp the technology and see its worth and put to good use.

[btc_angela]

For most businesses and stocks it is a bad year due to the pandemic. People had the same thinking for bitcoin when the covid-19 spread began. Further the market encountered good growth and the same is continuing. This has caused the price to reach new ath in the past three years of time.

Plus government and feds printing more money, desperate situations calls for extreme measures.



https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

Big investment from institutions were stated the reason for the market bounce. Hope this growth gets carried forward, and now the prime focus of the users were the price correction. Once after the correction we can get an clear view on the direction of move.

Corrections are going to be there no matter what, others call it healthy, to continue the growth of bitcoin. So it's not a good gauge to see a clear view, just another factor to look at, and institutions and big companies knows about it and we wouldn't be surprised if they will somewhat take a profits for every huge spike we see.

[davis196]

'Bouncing like a yo-yo'
During times of volatility, investors tend to move their money out of shares and into what are considered safer havens, like cash and gold.

Some feel cryptocurrencies are now being viewed as a shelter from stock market volatility.

1.The stock market(at least in the US) is showing sings of recovery,so I don't think that the investors are moving out of the stock market into the cryptocurrency market.
It's just the speculative risk loving investors,who want bigger profits and are willing to take bigger risks.They are the ones investing in the crypto markets.
2.The investors who love safety and security(safe heaven seekers) will always choose gold and a certain type of stocks over Bitcoin and cryptocurrencies in general.They will always hate financial assets with high volatility.

[jossiel]

Don't forget to put the source's link where you have copied the article. Always include the original owner of that article where it came from.

Source: https://www.bbc.com/news/business-54982604

Thanks for Helping me

You're welcome.

You're now good that you have included the source for that article. It is a protocol that you have to put it if you're copying others article. Even the smallest part, you need to give them the credit.

This is the type of news that gets more people interested in bitcoin once price starts going up. That is what is happening now and it is making investors smile. But Bitcoin still has more than $1k to get to its 2017 peak of  over $19k. We are likely to see Bitcoin surpass that level before this December.

By December, it's possible that we're breaking the ATH. If not, at least we get to see it back @$18k.

[kentrolla]

For most businesses and stocks it is a bad year due to the pandemic. People had the same thinking for bitcoin when the covid-19 spread began. Further the market encountered good growth and the same is continuing. This has caused the price to reach new ath in the past three years of time.

Big investment from institutions were stated the reason for the market bounce. Hope this growth gets carried forward, and now the prime focus of the users were the price correction. Once after the correction we can get an clear view on the direction of move.

Exactly, when COVID-19 started I was thinking how about BTC when days were passing I was literally scared because the entire share, stock, oil prices affected very badly especially daily needs stuffs. At that moment I thought BTC will go to $1000 honestly, but the output was totally unexpected and many positive announcement came across as well. BTC has already gained the momentum and the price may go upto 20k + in my opinion.

[jerrison]

The Bitcoin price is yet to hit its ever all-time-high and it is well to be resisted because i do not see a posibility of the price of bitcoin hitting the All-time-high and beyond as it has been bullish but without a concrete reason apart from the fact that we now have investors buying into it. I do not consider that fundamental enough for a breakout.

[Hamphser]

The Bitcoin price is yet to hit its ever all-time-high and it is well to be resisted because i do not see a posibility of the price of bitcoin hitting the All-time-high and beyond as it has been bullish but without a concrete reason apart from the fact that we now have investors buying into it. I do not consider that fundamental enough for a breakout.

Then what thing you would consider?

If we do compare the adoption level on that year 2017 compared into this 2020 then we can really see the difference in terms of numbers of big companies
that do consider bitcoin as part of it.So which means that its anticipated that the market value would really be high.Buying by lots of investors does mean
a solid reason for you to accept that we are really heading into a bullish market.Of course there would really be sell-off walls but when
demand is way more than against it then that would be easily eaten up and would see new heights.

[bandungan]

This is the type of news that gets more people interested in bitcoin once price starts going up. That is what is happening now and it is making investors smile. But Bitcoin still has more than $1k to get to its 2017 peak of  over $19k. We are likely to see Bitcoin surpass that level before this December.

Many speculations say that at its peak in December, bitcoin prices will exceed $ 19k. It happened after the graph of price increases in November was very strong and December will continue to get stronger.

[SquirrelJulietGarden]

Plus government and feds printing more money, desperate situations calls for extreme measures.



https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

FED, QEs and massive money printing since the early of 2020. The world is affected by the pandemic but it is not the worst thing. The worst thing is the world economy is grown up by debts and the pandemic give governments from big nations to show it is true. That bad thing in its turn help to increase awareness and capital flows into Gold, Silver, and Bitcoin. The halving in May caught more eyes of institutional investors and they have joined the party very seriously.

Corrections are going to be there no matter what, others call it healthy, to continue the growth of bitcoin. So it's not a good gauge to see a clear view, just another factor to look at, and institutions and big companies knows about it and we wouldn't be surprised if they will somewhat take a profits for every huge spike we see.

Corrections this time are very healthy corrections. They are corrections in the bull market and the market might see higher low, higher low. People might be ready to buy up when corrections come.

[Darker45]

Nice description from Shane Oliver. Well, a yo-yo is to Bitcoin as a falling stone is to fiat. It is crystal clear that in terms of value a yo-yo is much much better than a falling stone. Volatility is not to be worried about that much.

Mr. Moya is also correct that "traders need to expect $1,000 swings in a matter of minutes." But that, too, could be leveraged to their advantage and may indeed be worth appreciating in the end. Traders just need to relax when the yo-yo disc is at the bottom because it will go up eventually. That's part of the beauty of Bitcoin.

[CODE200]

This is the type of news that gets more people interested in bitcoin once price starts going up. That is what is happening now and it is making investors smile. But Bitcoin still has more than $1k to get to its 2017 peak of  over $19k. We are likely to see Bitcoin surpass that level before this December.

Many speculations say that at its peak in December, bitcoin prices will exceed $ 19k. It happened after the graph of price increases in November was very strong and December will continue to get stronger.

No assurance still but let us hope it will be again back to its feet. The market price suddenly fall upon breaking the $19k mark wherein it moved closely to its ATH and is now again falling. No one is certain if it is correction already which happened or just part of its volatility. Given that there's still a month before this year end, many investors are still hoping for another recovery and the possibility for a new ATH to be recorded in this industry's history. For now, no one clearly knows what could happen next and it is holding we can only do if we are aiming for bigger profit in the future.

[Walterhank]

Lately, a lot of big organizations, institutions and investors are interested in bitcoin more than ever. This is probably bitcoin is continuing to rise and is expected to rise even further.