Bitcoin is Going Ballistic…Again

“Since 2017, Bitcoin has been progressively building its case as a legitimate asset class and a credible alternative to gold, with backing from corporate mammoths like PayPal & Square.”

The crypto has been going parabolic as of late, more than 17% to the tune of $28,220. The gains have retreated back down to the stratosphere since then, but the price is still far above the level on Friday afternoon. By mid-afternoon on Monday, it was just 3.8% below its high.

This time, it’s pretty unclear why Bitcoin doubled-down on its holiday rally, but the price has been moving in lockstep with riskier assets. That means that when investors are willing to bear more risk for higher returns, they’ll gobble up Bitcoin. The Repo Market: Get In On The Joke

Bitcoin hit rock bottom for the year on March 12, less than two weeks before the global stock market reached its low as the pandy ensued. Since then, Bitcoin is up more than 450%, while the S&P 500 has risen 67% from the low point it reached on March 23.

Bitcoin trades on liquid exchanges 24 hours a day, seven days a week.

Since mid March, the U.S. Dollar Index [$DXY], an alternative for interest in safe, dollar-denominated assets among international investors, has dipped 12% as the global economy has recovered. In mid March, the Fed announced it would provide as much monetary stimulus as needed for the U.S. economy, which lowered interest rates and led to expectations they would remain at rock bottom. How The Panic of 1907 Ushered in The Federal Reserve

Yields on long-term Treasury bonds are now below the expected rate of inflation, reducing interest in that debt, as well as in the dollars needed to buy it. Investors have moved into riskier assets, including Bitcoin, in search of higher returns.

Since the stock-market closed on December 22, the date that marked the end of a short pause in the stock rally, the S&P 500 is up a tenth of a percent. Treasury prices are down since then, with the 10-year Treasury yield up to 0.94% from 0.92%. The Dollar Index is down 0.3%. SEC Comes Down on XRP

Digital asset manager Grayscale Investments [GBTC] has passed another milestone, reaching $19 billion in assets under management on December 28, up from the $16.4 billion

2 thoughts on “Bitcoin is Going Ballistic…Again

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s