Bitcoin hits new all-time high above $23,000, extending its wild 2020 rally
Bitcoin hit a fresh record high above $23,000 on Thursday, extending a wild rally for the cryptocurrency that has seen it more than triple in value this year.
The world’s most-valuable digital currency surged 12% to $23,421, according to crypto market data provider Coin Metrics, taking its year-to-date gains to more than 200%. Bitcoin only just smashed the $20,000 mark on Wednesday.
Bitcoin later pared back its gains slightly, trading over 9% higher at about $22,787 by 7:30 a.m. ET.
Crypto bulls have pointed to increased demand from institutional investors, pitching bitcoin as a hedge against inflation like gold amid unprecedented U.S. coronavirus stimulus. A recent JPMorgan note claimed such investor appetite would boost inflows into funds tracking bitcoin to the detriment of gold.
On Tuesday, U.K. asset manager Ruffer revealed it had around 2.5% of its portfolio invested in bitcoin “as a small but potent insurance policy against the continuing devaluation of the world’s major currencies.” The company managed £20.3 billion ($27.6 billion) in assets by the end of November.
Bitcoin could see a 25%-30% sell-off in the new year, but it’s still a long-term buy, trader says
Bitcoin’s record rally could hit a wall in 2021.
Signs in the cryptocurrency’s technical chart point to a 25%-30% sell-off that’s likely to hit early in the new year, Miller Tabak chief market strategist Matt Maley told CNBC’s “Trading Nation” on Thursday.
Bitcoin broke above the $23,000 level for the first time on Thursday, building on a massive, 215% year-to-date rally.
Dollar gets global beating as stimulus, Brexit boost risk appetite
The dollar fell to its lowest in more than two years against major currencies on Thursday as U.S. lawmakers wrangled over stimulus details, while Bitcoin rose to a record high, amid surging interest from larger investors.
The dollar index fell as low as 89.723 against a basket currencies on Thursday, breaking below 90 for the first time since April 2018, and was last down 0.50% at 89.795.
The euro was last up 0.52% at $1.2266, its highest since April 2018.
10-year Treasury yield turns lower after disappointing jobs data
The 10-year Treasury yields fell slightly on Thursday after data showed jobless claims unexpectedly jumped to the highest level in three months.
The yield on the benchmark 10-year Treasury note dipped slightly to 0.915%, while the yield on the 30-year Treasury bond fell 2 basis points to 1.645%. Yields move inversely to prices.
The Labor Department said jobless claims totaled 885,000 last week, hitting their highest level since early September as the number of Covid-19 infections surged around the U.S. Economists expected 808,000 workers sought state jobless benefits during the week ended Dec. 12.
Reference: CNBC
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