Bitcoin hits nearly three-year peak, homes in on record

By Tom Wilson and Gertrude Chavez-Dreyfuss LONDON/NEW YORK (Reuters) - Bitcoin on Tuesday soared to its highest level since December 2017 as the asset's perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand. The largest cryptocurrency in terms of market capitalization climbed to $17,868, its highest level since Dec. 20, 2017, and was last up 6.1% at $17,760.

Reuters November 18, 2020 01:06:22 IST
Bitcoin hits nearly three-year peak, homes in on record

Bitcoin hits nearly threeyear peak homes in on record

By Tom Wilson and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK (Reuters) - Bitcoin on Tuesday soared to its highest level since December 2017 as the asset's perceived quality as a hedge against inflation and expectations of mainstream acceptance lured institutional and retail demand.

The largest cryptocurrency in terms of market capitalization climbed to $17,868, its highest level since Dec. 20, 2017, and was last up 6.1% at $17,760. It hit just shy of $20,000 in mid-December, 2017, during a buying frenzy driven by retail investors.

Bitcoin has climbed roughly 150% this year and rallied about 360% from its March lows.

"Driven by a mix of market structure and strong fundamentals, bitcoin could now be within days of reaching its all-time high," Nicholas Pelecanos, head of trading at NEM, said.

"Underlying this bullish price action is the inflation hedge narrative that has captured Wall Street since the immense money printing campaigns undertaken by the Fed earlier this year," he added.

Citi's technical analyst Tom Fitzpatrick said in a note that bitcoin could climb as high $318,000, based on his charts.

Other major cryptocurrencies including ethereum and XRP , which often move in tandem with bitcoin, rose 4.2% to $479.91 and climbed 4.5% to 30 U.S. cents, respectively.

Bitcoin's 2020 rally has drawn momentum from strong appetite for riskier assets following unprecedented government and central bank stimulus measures to combat impact of the COVID-19 pandemic, and its reputation for being inflation-proof.

Investors, such as family offices, which manage money on behalf of wealthy individuals, have sought out the cryptocurrency as a hedge against any future inflation that might stem from central bank stimulus, analysts said.

Bitcoin's supply is capped at 21 million. Proponents say its scarcity provides an innate value and shields it from central bank or government policies that stoke inflation.

An expectation mainstream companies will embrace bitcoin and its use as a means of payment will become more widespread also drove buying, analysts said.

Bitcoin has risen by nearly half since PayPal said last month it would open its network to bitcoin and other cryptocurrencies.

In an interview with Bloomberg TV early this month, Rick Rieder, BlackRock Inc's chief investment officer of global fixed income, said crypto assets were a useful addition to a balanced portfolio.

(Reporting by Tom Wilson in London and Gertrude Chavez-Dreyfuss in New York; Editing by Pravin Char and Barbara Lewis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Facebook releases first data on hate speech prevalence on its platform
News & Analysis

Facebook releases first data on hate speech prevalence on its platform

By Elizabeth Culliford (Reuters) - Facebook Inc for the first time on Thursday disclosed numbers on the prevalence of hate speech on its platform, saying that out of every 10,000 content views in the third quarter, 10 to 11 included hate speech. The world's largest social media company, under scrutiny over its policing of abuses, particularly around November's U.S.

Santa, barred from malls and chimneys, enters homes via interactive video
News & Analysis

Santa, barred from malls and chimneys, enters homes via interactive video

(Reuters) - Santa cannot sit with kids in shopping malls this year, but they can still tell him their Christmas wishlist in a video chat at home.     Technology company Storyfile has come up with an artificial intelligence alternative to the holiday tradition: an interactive website where Father Christmas answers questions as if in person

Facebook estimates hate speech seen in 1 out of 1000 views on its platform
News & Analysis

Facebook estimates hate speech seen in 1 out of 1000 views on its platform

By Elizabeth Culliford (Reuters) - Facebook Inc for the first time on Thursday disclosed numbers on the prevalence of hate speech on its platform, saying that out of every 10,000 content views in the third quarter, 10 to 11 included hate speech. The world's largest social media company, under scrutiny over its policing of abuses, particularly around November's U.S.