Well, bitcoin has once again impressed traders and exhibited a level of resilience that nobody ever expected. Following a sudden drop into the high $12,000 range, the currency has shot back up above $13K, but now, the asset has reached an even higher point on the financial ladder. At the time of writing, bitcoin – the world’s number one cryptocurrency by market cap – is trading for over $13,400, the highest it’s been since early 2018.
The Strength of Bitcoin Gains New Ground
The last several weeks have been rather good to bitcoin for the most part. The asset – after having suffered an extremely bearish September – shot up past the $11,000 mark during the early part of October and it has been on a serious rise ever since. The currency then jumped into the $12,000 range and hovered here for a while.
Eventually, it would cross the $13,000 line after PayPal announced that users could potentially use bitcoin and other forms of crypto to purchase both goods and services through its financial platform.
For the most part, it has remained here ever since. Despite a small drop roughly 24 hours ago, the currency is back in top form and has gained about $600 in just a single day. The currency appears to be maturing greatly over the past week alone.
In addition, while analysts and traders love to talk about how bearish last month was, the asset never fell below $10,000, and the currency remained in five-figure territory throughout those four weeks. The currency’s lagging behavior was also over once September reached its final moments, and the fact that the currency only stayed in the doldrums during the month instead of any point beyond is proof that the asset is getting a thicker skin.
Over the past few days, the currency has also gained newfound attention and respect from the likes of JPMorgan and Mike Novogratz, both of whom had positive things to say about it. In the case of billionaire investor and ex-hedge fund manager Novogratz, while bitcoin is not likely to serve as a legit currency until five years from now, the asset is gaining a reputation for being a store of wealth, making it comparable to gold.
Something That Can Protect Your Money
This has been the attitude since COVID first started making its way through the financial space. After ravaging markets in March, bitcoin – following a $6,000+ drop – began surging back to the top, and it appeared that more people were seeing it as a potential hedge against inflation and other forms of economic strife. Bitcoin is now a tool designed to ensure one’s portfolio is consistently safe and stable enough to sustain whatever the economy throws at it.
JPMorgan also compared the asset to gold in a letter, despite being a somewhat skeptical company in the past.