Bitcoin has rallied past the $ 25,000 psychological level, bringing gains to close to 50% in December as the 2020 bull run shows no signs of slowing down.
Bitcoin price has risen year-round after the start of the year at around $ 7,000 per bitcoin, and has risen well past its 2017 high of around $ 20,000.
But even as the bitcoin price continues to rise, the chief executive of financial advisory group deVere, Nigel Green, has revealed that he has sold half of his bitcoin holdings.
The bitcoin price will end 2020 nearly threefold higher than the year began, overshooting … [+]
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“I sold half of my holdings in bitcoin as it hit an all-time high,” Green, who has been talking about bitcoin’s prospects for years, said in an emailed statement. ‘Why? Because now it should be treated like any other investment – that is, where possible it’s better to sell high and buy in the cold. ‘
Bitcoin’s selling pressure will increase as the price rises and investors are trying to name the top of the market. With bitcoin price up 250% in the last 12 months, taking profits among long-term investors could bring the price down.
“The steady rise in the price of bitcoin has made the digital currency the best-performing asset of 2020, up more than 200%,” Green added. “As such, I felt the time was right to make a profit.”
However, Green remains confident in bitcoin’s long-term performance.
“There should be no misunderstandings about my decision to sell. It’s not due to a lack of belief in bitcoin, or the concept of digital currency – it’s turning a profit now to buy more later.”
Bitcoin’s profile has skyrocketed this year along with its price, with the coronavirus pandemic and subsequent government spending contrasting it starkly with fiat currencies.
As a result, bitcoin has caught the attention of a number of major investors who view bitcoin as an emerging safe haven and inflation hedge.
British fund manager Ruffer Investment Management pushed bitcoin past the $ 20,000 price last week when it revealed it had bought $ 745 million worth of bitcoin, widely regarded as a sign of increasing institutional interest.
As institutional investors and Wall Street giants “increasingly pile into crypto, bringing their vast expertise and capital, this in turn increases consumer interests,” Green believes investors will increasingly look to bitcoin as a hedge against the “legitimate inflation problem.”
Bitcoin price is up 250% in the last year and has reached the … [+]
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Elsewhere, the bitcoin and cryptocurrency community are feeling optimistic in 2021, with many feeling justified by bitcoin’s performance this year.
Earlier this week, Michael Novogratz, the former hedge fund billionaire turned bitcoin and cryptocurrency, said he can see bitcoin hit $ 50,000 next year – predicting that bitcoin will eventually “eclipse gold.”
Ray Dalio, the legendary billionaire founder and co-chair of the world’s largest hedge fund, Bridgewater Associates, admitted this month that bitcoin has proven itself as a “gold-like asset alternative”.