Around 6:25 am GMT on Wednesday, January 6th, 2021, the value of Bitcoin surged above $35,000 in the trade market.
A day before Bitcoin took a nosedive and was traded just below $29,000. However, the drop was followed by a 300% surge in the value of Bitcoin on its 12th anniversary. It was recorded on Wednesday that Bitcoin Sprang back with a boost and went as high as $35,000. This set up a new record for Bitcoin.
According to Coin Metrics, their figures reflected that Bitcoin traded for more than $35,000 in the market on Wednesday.
This was all followed by JP Morgan’s public note in which it boldly claimed that Bitcoin may climb as high as $146,000. The Assessment of JPMorgan is also based on the theory that Bitcoin might strip gold of its title of “alternate currency”. Gold also saw huge gains at the beginning of this year as it was observed that gold rose about 25% per year.
SkyBridge’s founder, Anthony Scaramucci, told CNBC that their firm is experiencing bullish trade with Bitcoin. He further said that with such an increase in value during trade, he is seeing Bitcoin replacing gold in the world economy.
Scaramucci, an ex-director of the White House Communication Department said that cryptocurrency would prosper better with Democrats ruling in the Congress.
Strategists at JPMorgan suggested that to compete with gold, Bitcoin would have to become substantially more stable. The current volatility of Bitcoin in the trade market makes it unfavorable to be adopted as an alternate currency. The value of cryptocurrency is known to be unpredictable and undependable.
Jamie Dimon, CEO of JPMorgan Chase, once gave a statement against cryptocurrency which attracted too much criticism. In his statement, he stated that cryptocurrency is a fraud. However, later on Mr.Dimon said that he regretted calling Bitcoin a fraud and that the network is real. He further said that he was still worried about how governments are going to react when Bitcoin gets really big.
Henri Arslanian of PwC said in an interview that the current surge in the value of Bitcoin is because of institutional investors. Bitcoin’s rise in value is being driven by the current interest of big institutional investors. What would be the fate of Bitcoin when the interest of institutional investors would be diverted to some other commodity?