Bitcoin doubles in price in one month

Bitcoin has surged past $50,000 for the second time this year, with the cryptocurrency doubling in value over the past month.

It reached $50,474 on Friday, after it has dropped as long as $A43,786 just three days ago.

On January 8, the cryptocurrency has reached a record high of $A52,375. It has been a big month for Bitcoin, as it has surged from $A25,747 on December 15.

Just days ago the world's most popular cryptocurrency suffered a frenzied dumping as it dropped 23 per cent in value to $A43,786. It had hit an all time high on January 4 crashing through the $A52,000 mark.

But despite the UK financial watchdog warning consumers to be prepared to lose their money if investing in cryptocurrency, Bitcoin has reached the new high.

Caroline Bowler, CEO of Bitcoin exchange BTC Markets, told ABCthat Bitcoin's volatility was normal behaviour for a growing asset and that investors were prepared to take on the risk.

"I don't think it's deterred any of the longer term investors - from our own exchange - they're all coming back into the market," she said.

"When I analysed what we were seeing, it was a wall of green, as our investors were coming back in and looking to participate in the price action. It's analysts at the likes of JP Morgan, from Bloomberg, who predicted the longevity of digital assets, more specifically of Bitcoin, as an asset class."

Investors and hedge fund members are betting on the digital currency to become a mainstream payment method, especially after PayPal announced it would begin offering Bitcoin and cryptocurrency support.

Central banks are also exploring creating their own forms of digital currencies, said Ms Bowler, which would sit alongside cryptocurrency.

She added that self-managed super funds (SMSF) were also showing an appetite for cryptocurrency.

"I know here at BTC Markets we've seen a five fold increase in the number of SMSF account holders just across 2020 alone, and we're seeing the upward trend of people coming into the market as we go to 2021," she said.

This week European Central Bank president Christine Lagarde called for global rules for cryptocurrencies, adding that regulation needed to be applied.

A leaked report from Citibank in December referred to the cryptocurrency as "21st century gold".

 

 

Originally published as Bitcoin doubles in price in one month



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