Pushes cryptocurrency market value past $1 trillion
The digital coin hit an all-time high of $40,188 at around 1:15 p.m. ET, just a few hours after blowing past the $39,000 level, according to data from Coin Metrics.
Social Capital’s Chamath Palihapitiya thinks the digital currency has a long runway ahead even after its massive rally. It’s probably going to $100,000, then $150,000, then $200,000,” Palihapitiya told CNBC’s “Halftime Report.” “In what period? I don’t know. [Maybe] five or 10 years, but it’s going there.”
Bitcoin’s resurgence has been attributed to a number of factors including more buying from large institutional investors. High-profile investors like Paul Tudor Jones, for example, have been buying the digital currency.
The idea of bitcoin as a hedge against inflation has continued to gain steam as governments around the world embark on large-scale fiscal stimulus programs. Analysts argue this could cause a spike in inflation.
Bitcoin’s rise has also been helped by moves in the space from big financial firms like PayPal and Fidelity. PayPal last year launched a feature that lets its users invest in cryptocurrencies, and is planning to offer crypto payments across its massive network of retailers later this year.
Anthony Pompliano, co-founder of crypto hedge fund Morgan Creek Digital, said bitcoin has seen more adoption as a means of payment recently. The total transaction volume of bitcoin in 2020 was greater than that of Venmo, PayPal or Apple Pay, he claimed.
But some bitcoin critics — such as David Rosenberg, economist and strategist at Rosenberg Research — have called bitcoin a bubble. “The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal,” Rosenberg told CNBC earlier this month.