Bitcoin surged to $68,500 (£50,000) as of yesterday morning, beating a previous record high of $67,700 in late October. The world’s largest digital currency is now up 110 percent since the beginning of 2021 in a year of highly volatile year of trading and has a market value of more than $1.1 trillion.
The surge has been spurred by rising inflation as well as renewed interest from retail investors.
Sentiment was also helped by Tim Cook, CEO of Apple, who said yesterday he owns cryptocurrency and has been “interested in it for while”,
Jonas Luethy, Sales Trader at the UK based digital asset broker GlobalBlock, said: “Bitcoin made a new all-time high early this morning, peaking at $68,500.
“Analysts are suggesting that a lack of supply is a major factor as some reports show that 85 percent of existing supply has remained inactive for the past 3 months.
“This comes as supply held on exchanges also reaches a record low.
“Analysts are suggesting $75,000 as a target on the upside, but if the price takes a turn downwards, the price could fall to the 50-day moving average at around $56,000.”
Elsewhere, Ethereum, the world’s second largest cryptocurrency, also reached a record high as other digital assets tracked bitcoin higher yesterday.
The cryptocurrency was trading up 2.6 percent at $4,727.47.
Is the surge here to stay?
Crypto experts believe bitcoin and other crypto assets are likely to remain high – but the question of when bitcoin will push the $70,000 (£51,658.25) barrier is of when, not if.
According to a model by quant analystPlanB, bitcoin will hit $98,000 (£72,321.55) by the end of November and will finish 2021 at $135,000 (£99,626.62).
Elsewhere, Benjamin Cowen from Into The Cryptoverse, has said he believes bitcoin could go as far as to break the £100,000 barrier in this market cycle.
He said: “I don’t think we have to wait many years for Bitcoin to make it to $100,000 (£73,797.50) at this point.
“I would think we would make it there this market cycle.”