The price of Bitcoin hit a new all-time high on Monday as investors increasingly scoop up risky assets amid the topsy-turvy pandemic economy.
The controversial cryptocurrency’s value hit an all-time peak of $19,864.15, shattering its previous high-water mark of $19,783.21 which was set back in December 2017. It was recently up 6.1 percent at $19,306.35.
Bitcoin has gained more than 170 percent this year, with most of that growth coming since September. Investors cite demand for riskier assets amid unprecedented fiscal and monetary stimulus, hunger for assets perceived as resistant to inflation, and expectations that cryptocurrencies will win mainstream acceptance as payment companies including PayPal and Square have recently allowed their use.
“Bitcoin is a natural safe haven for those seeking shelter from rapidly increasing central bank money printing and the inflation that everyone agrees is already increasing,” said Sergey Nazarov, co-founder of Chainlink, a decentralized network that provides data to smart contracts on the blockchain.
This most recent crypto craze is benefiting from an unprecedented, pandemic-marred market reality in which stocks are trading at nosebleed prices while bond yields are hovering around zero. That combination, experts say, has created a whole new class of crypto investor that is viewing assets like Bitcoin in a whole new light.
“You need to put your money somewhere,” Marc van der Chijs, a long-time crypto investor and founder of First Block Capital, told The Post. “Bonds have no yield, keeping it in cash is dangerous. People used to put their money in gold, but gold is going down. It looks like people are taking their money out of gold and putting it into bitcoin.”
Crypto mavens like van der Chijs also believe that this market dynamic will help this new rally last much longer than the 2017 surge that lost steam and caused the price of Bitcoin to lose half its value within days of hitting its high mark.
“Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold,” Crypto entrepreneur and famous twin Tyler Winkelvoss told CNBC in an interview Monday morning. “If it does that it has to have a market cap of $9 trillion. So we think bitcoin could price one day at $500,000 a bitcoin.”
That would be a valuation 25 times higher than today.
Van der Chijs agrees with the notion that Bitcoin will keep going up, but he’s more measured in his projection.
“Institutions are putting their money in now,” he said, “It’s not retail-driven like 2017 so we’re going to see a 12 month to 18 month bull run with the price of Bitcoin possibly going up 10 times over the next 18 months.”
With Post wires