Bitcoin crossed the $23,000 threshold for the first time, and more Wall Street players are starting to take notice of the digital currency’s potential, Bloomberg reports.
Why It Matters: Given its volatile nature, Bitcoin has become one of the most polarizing investment vehicles in the financial markets. Those in favor argue “cryptocurrency is muscling in on gold as a portfolio diversifier amid dollar weakness and potential inflationary pressure.” But others see a situation ripe with speculation, leading to a similar meltdown that Bitcoin had around three years back.
But this time around, asset managers, family offices and quant funds are playing a more prominent role. And their willingness to get involved with Bitcoin shows Wall Street’s acknowledgment of its potential.
- Guggenheim Investments CIO Scott Minerd says thanks to “rampant money printing” by the Fed, the digital token could climb as high as $400,000.
Numbers To Consider:
- Bitcoin increased by 9% Thursday, reaching a high of $23,256.92.
- The world’s largest digital currency has grown 220% this year alone.
- Kay VanPeterson (Global Macro Strategist at Saxo Capital Markets Pte in Singapore): The “price will now go from linear to parabolic.”
- Craig Erlam (Senior Market Analyst at Oanda Europe): “A break above $20,000 may bring the buzz and a strong end to the year.”
- Bloomberg Intelligence Strategist Mike McGlone sees “the price ratio of Bitcoin-to-gold headed for 100, if history is repeated, from its current level of around 12.”
- Dan Gunsberg (CEO of Hxro, a cryptocurrency trading platform): “Testing $36,000 will be the next real objective.”