(Duplicate) Bitcoin Hits A New Record High Of $36,000 As Wild Price Swing Resumes

While extreme swings continue to rock Bitcoin, the price of the world’s largest crypto asset has reached another all-time high on Wednesday, January 6. The cryptocurrency increased its value by around 8% to climb to $36,499, surpassing the previous high record experienced on January 3 when it was trading at $36,190 as of 4:37 pm in New York. On Monday, January 4, Bitcoin had dropped its price by as much as 17%.

Several factors have been identified for contributing to the increase of Bitcoin’s value, indicating how difficult it is to mention the potential reasons for the cryptocurrency’s latest volatility. Some traders have identified JPMorgan Chase & Company’s prediction of long-term price advancing to as much as $146,000 as the cause of the recent price rise. However, others have pointed FOMO (fear of missing out) as the cause of the record rally. Coinbase the largest crypto exchange in the U.S stated that it is witnessing “connectivity issues” on both its mobile app and website.

Vijay Ayyar, Head of Business Development at Luno cryptocurrency exchange in Singapore, said: “Clear bull market, and we’re not getting 30 per cent to 40 per cent drops like in 2017. The market is more mature with bigger buyers. Keep in mind though that we’re in a parabolic phase and they do top out.”

Matt Long, head of distribution and prime products at OSL crypto brokerage business in Hong Kong, said that while the latest price swings are part of the past boom and bust cycles, Bitcoin’s ability to reverse its price fall so quickly this week indicates institutional investors are not abandoning the crypto space.

Long said: “Monday’s dip was instructive as institutional investors used the opportunity to buy in. Institutional investment is firmly in the digital asset sector, and potentially accelerating.”

Likewise, Stephen Innes, chief global market strategist at Axi, said: “The chase higher is back based on the notion that bigger main street investors are interested in building longer-term positions.”

Bitcoin as A Hedge Against Market Risks

Bitcoin offers a hedge against risks such as inflation and a weakening dollar in a world awash with monetary stimulus. The crypto’s dizzying rally has attracted interests among Wall Street giants, with several institutions seeking to capitalize on the impressive returns being offered by the digital asset. Many companies and prominent investors such as Stan Druckenmiller, Scott Minerd, Paul Tudor Jones, and others have begun allocating their funds into Bitcoins. The crypto market is being driven by institutional investors mainly from North America, China, Japan, and South Korea.