New Delhi: The world’s most popular cryptocurrency bitcoin reached a new record on Thursday. On December 31, it touched a level of $ 29,000 after large investors showed interest in it. In this way, there has been a jump of about 300 percent in bitcoin prices this year. For the first time since May 2019, bitcoin has seen such a big boom in any one month.
On December 16, the price of bitcoin crossed $ 20,000 for the first time. Big US investors are showing interest in bitcoin, due to which its value is increasing. The price of bitcoin reached $ 29,292 as of 9:12 am on Thursday in Hong Kong. Bitcoin prices have climbed four times this year amid the global corona virus epidemic.
Despite the worldwide coronavirus crisis, the value of cryptocurrency has increased four times this year. According to the Galaxy Crypto Index tracking bitcoin, bitcoin has risen 280 percent this year. In March this year, the price of bitcoin was hovering around $ 5000.
Investor’s craze for cryptocurrencies is being attributed to the recent fall in the price of gold. The price of gold has been declining for the last several months. According to US bank JP Morgan Chase, the rise of cryptocurrencies in mainstream finance is the real reason.
Bank strategists say that a lot of money has been invested in bitcoin funds since October, while investors have distanced themselves from gold. This trend is likely to persist for a long time as more and more institutional investors are turning to cryptocurrencies. The popularity of digital currencies as an asset class is constantly increasing.
According to listed security firm The Grayscale Bitcoin Trust, about $ 2 billion has been invested in bitcoin since October, while $ 7 billion has been withdrawn from gold exchange funds. According to JP Morgan, the share of bitcoin in family office assets is just 0.18 per cent while the share of gold ETF is 3.3 per cent.
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