- With Bitcoin hitting an all-time high this week, major players are reflecting on how far the space has evolved since the previous record set in December 2017.
- The bullish case appears to be intact as institutional interest remains elevated for Bitcoin.
- Five crypto experts weighed in on its rally, explaining why Bitcoin has room to go higher and how the dollar’s weakness will fuel it further.
- Visit Business Insider’s homepage for more stories.
Bitcoin, the world’s most popular cryptocurrency, hit an all-time high of $19,857 this week.
Surging interest in the digital token brought its year-to-date gain to 177%. The last record was set in December 2017 when its price reached $19,783.
Here’s what five crypto experts had to say about its recent surge, and why the dollar hitting its lowest point in 2.5 years is good for Bitcoin.
Peter Smith, CEO and co-founder of crypto exchange Blockchain.com
Smith said bitcoin was a “grand experiment” from 2011 to 2014, when some thought it would take over traditional currencies. But between 2014 and 2017, the Blockchain.com team recognized it could work.
“From 2017 and onwards, Bitcoin’s become inevitable. Bet on Bitcoin’s inevitability,” he said.
Paolo Ardoino, CTO at crypto exchange Bitfinex
“No amount of cynicism, disbelief or even fantastical thinking can obscure the compelling case for Bitcoin,” he said. “Global asset managers will continue to recalibrate their portfolios accordingly.”
Anthony Denier, CEO of trading platform Webull
The dollar index, a measure of the US dollar against a basket of six currencies, was trading at a two-and-a-half year low this week. Positive news on COVID-19 vaccine development has raised hopes of a swift economic recovery and eroded safe-haven demand for the dollar. Congressional Democrats coming out in favor of a $908 billion stimulus package may also weigh on the US currency.
Webull CEO Denier believes a weak dollar is good for Bitcoin because the Fed’s policy of printing money, thereby devaluing the dollar, will make people use the token as a haven from inflation.
“If people are pulling money out of gold and putting it into Bitcoin, that could give more fuel for the Bitcoin rally,” he said.
Simon Peters, analyst at multi-asset investment platform eToro
Peters said eToro saw a 66% increase in the number of people holding a Bitcoin position on its platform in November, compared with the last time it hit an all-time high in December 2017.
He pointed to some indicators that suggest Bitcoin could go higher still.
“If we maintain the current rise, then $25,000 before the start of 2021 is on the cards,” he said. “There will be some selling at $20,000, and this could see a short move backwards. But if bitcoin shrugs off this selling and continues rising, then New Year’s Eve at $25,000 is there for the taking.”
Glen Goodman, author of bestselling book ‘The Crypto Trader’
Although Bitcoin has doubled in price in just a couple of months, it could easily fall just as fast as it did after the last boom, according to Goodman.
“All the talk of ‘Tulip Mania’ in the 2017 boom is absent now. Once the historic Dutch tulip bubble burst it never recovered, while Bitcoin has now shown it has real staying power,” he said.
The author, who is a contributing expert on cryptocurrency at the London School of Economics, said the “Maisie Williams Indicator” is a great gauge to measure where the level of interest lies.
The Game of Thrones star recently conducted a poll on whether she should buy Bitcoin. Most of the million voters said no, but at the peak of the last Bitcoin boom, most voters in a CNBC twitter poll said yes to Bitcoin at precisely the wrong time, Goodman noted.
“The lesson is: whatever the herd’s doing, it often makes sense to do the opposite,” he said.