A citizen of Hong Kong uses a Bitcoin automatic teller machine (ATM) in December 2017. AP Yonhap News
Cryptocurrency (virtual currency) assets, which have been weak for a while, are on the rise again in the US market on the 8th (local time). Bitcoin price broke the $52,000 mark in two weeks, and Ethereum broke the $1800 wall again. It is analyzed that virtual assets have emerged as an alternative investment vehicle as the U.S. Senate passed the $1.9 trillion super stimulus law.
According to Coinbase, the largest cryptocurrency exchange in the United States, the price of bitcoin was traded at $52,034.63 per piece at 6:35 p.m. on the day (8:35 a.m. on the 8th Korean time). Considering the characteristics of cryptocurrency transactions that do not have a separate deadline, this is a 2.02% increase compared to 24 hours ago.
Bitcoin price has been adjusted relatively largely due to the recent increase in government bond yields and the impact of the stock market. The bitcoin price, which had surpassed the all-time high of $58,000 on the 21st of last month, pushed it to $43170.01 on the 28th of the same month. The general analysis is that the price of risky assets such as stocks and bitcoin fell as the interest rates for long-term U.S. Treasury bonds jumped.
The price of bitcoin, the leader of cryptocurrency, surged in the US market on the 8th (local time) and broke again over $52,000.
It has been about two weeks since the 22nd of last month (up to $54411.90 during the intraday) that the bitcoin price has again surpassed $52,000. Also, compared to the 28th of last month, which was a short-term low, it jumped more than 20% in just a week.
Other cryptocurrency prices are gaining strength at the same time, with Ethereum’s second-largest market capitalization over $1,800 after Bitcoin.
Ethereum recorded an all-time high of $2041.42 on the 19th of last month, but has since turned to weakness. It is the first time since the 22nd of last month that Ethereum has surpassed $1800 again. Considering that the price fell to the beginning of the $1400 range on the 5th, the price jumped nearly 30% over the 3 days.
The price of Ethereum, the second largest cryptocurrency market capitalization, surpassed $1,800 again in the US market on the 8th (local time).
Institutional investors are also continuing to purchase additional cryptocurrencies. May2, an image and video software company, recently announced that it has purchased Ethereum for $22 million (15,000 units) and Bitcoin for $17.9 million (379.1 units). The purchase time is on the 5th of this month.
May2, a listed company on the Hong Kong Stock Exchange, has obtained approval from the board of directors to purchase cryptocurrencies up to $100 million in cash reserves. In the announcement, May2 explained, “In addition to diversifying holdings, there is also a meaning to prepare to enter the blockchain market.”
“Cryptocurrency is not only an effective hedging tool, but also an attractive asset when building a portfolio (asset allocation),” said George Ball, chairman of investment firm Sanders Morris Harris, in a recent interview with Yahoo Finance. When appears, the value of the currency will inevitably decrease, and cryptocurrency can be a good alternative.”
Sanders Morris Harris is a subsidiary of Tektonic Financial with $4 billion in customer assets. Chairman Ball showed a negative position on virtual assets, but suddenly changed his position in August of last year, emphasizing that it is the time to invest in bitcoin. The reason for the investment that Chairman Ball put forward at the time was the fall in the value of money due to the massive stimulus package of the US government.
Investment bank JP Morgan also predicted that the dollar would be devalued relatively if this super stimulus was implemented, Yahoo Finance said.
New York = Correspondent Jae-Gil Cho [email protected]