Coin

First-time Bitcoin Scales $58K; YTD Benefit Over 98 percent

For the leading cryptocurrency, another day, another all-time high.

Bitcoin (BTC (-0.6 percent)) set a new high water mark of $58,332.36 on Sunday, taking the year-to-date gain of the leading cryptocurrency to over 100 percent less than two months into the year. BTC rose 305 percent for all of 2020 .

The price settled down to $58,148.31 at press time, up 2.3 percent over the last 24 hours, and cut the YTD gain to over 98 percent .

Some attribute the eye-popping increase to enormous demand from consumers looking to hedge against inflation as governments keep spending, and in a desperate attempt to keep their economies alive during the pandemic, central banks keep printing money. However, the main indicators do not reflect inflation at all, despite all the printing and spending of fiat money.

John Willock, chief executive of Blocktane’s digital asset exchange, said that demand is massively outstripping supply by the insatiable buy-side pressure from exchange-traded fund (ETF) issuers, closed-end funds and major public companies adding bitcoin to their positions.

Earlier this month, when the electric-car manufacturer announced it had acquired $1.5 billion of the cryptocurrency for its treasury, the latest ramp-up in BTC’s price was sparked by Tesla. In terms of investing treasury funds in BTC, this sparked a round of playing “who’s next?” and the resulting hype helped concentrate the attention of main street investors overall on the market.

Some have suggested that the series of all-time highs reached over the last few days were at least partly due to BTC-hungry MicroStrategy, which said it raised more than $1 billion in debt on Friday morning to finance even more cryptocurrency purchases. After the company’s announcement, the price of BTC has risen by more than $5,000.

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