The best-known cryptocurrency in the world traded at a new record above $ 40,000 on Thursday afternoon, which equates to a doubling of assets in less than a month as it attacks new spikes almost daily.
A single bitcoin BTCUSD,
traded on CoinDesk at a peak of $ 40,402, before pulling back to around $ 38,632, on the final check. Bitcoin first hit $ 20,000 in mid-December, the highest transaction ever at the time.
Bitcoin is already up 32% in January, after a return of around 300% in 2020. Gains for bitcoin and other alt currencies, or virtual currency alternatives to bitcoin, have so far surpassed traditional stocks and bonds, even with the Dow Jones Industrial Average DJIA,
the S&P 500 index SPX,
and the Nasdaq Composite Index COMP,
trading on or near records on Thursday.
Digital asset fanatics say the rally for bitcoin and its ilk this time around is different from the fervor of 2017 and could signal a much more sustainable climb for cryptos.
The recent rally was bolstered by increased interest in bitcoin from institutional investors and central bankers who expressed a desire to create their own digital currency.
Some market participants say bitcoin may take some demand away from gold, which is considered the traditional safe haven, with a 5,000-year reputation as a currency and store of value.
JPMorgan Chase & Co. strategists speculated that a bitcoin could soon be worth $ 146,000, if it starts pulling more money away from traditional gold buyers, which the researchers say is already happening.
Bitcoin investors were drawn to the story that it could act as a repository for wealth amid the central bank’s unbridled money pressure in 2020 to support an economic recovery from the coronavirus pandemic.
In addition, PayPal PYPL,
recently allowed users on its platform to buy bitcoin as well as other sister cryptos such as Ethereum’s Ether ETHUSD,
coins, Bitcoin Cash BCHUSD,
and Litecoin LTCUSD,
Square’s SQ,
The popular Cash app also allows users to buy and sell bitcoins.