At New Highs, Bitcoin Is a Global Safe Haven Asset
The market cap of Bitcoin surpassed the $14 bln margin for the first time in history, breaking its all-time record high previously set in 2014. The surging value of Bitcoin led to extensive mainstream media coverage and social media attraction, with Bitcoin earning a spot on the trending section of social media platforms like Twitter.In the morning of December 22, Bitcoin crossed the $14 bln mark to establish its highest market cap to date. Additionally, Bitcoin officially recorded a 100 percent year-to-date price increase, surpassing the performance of well-performing currencies like the Russian ruble by large margins.
Mainstream media outlets including Reuters, Business Insider and CNBC immediately began to publicize Bitcoin’s most significant milestone in recent years, as Bitcoin continues to surge in value with mainstream speculation and increasing demand from dominant markers such as China.
While the price has stalled slightly since its initial surge earlier today, the price of Bitcoin reached $874 at its daily peak, surpassing a six-month high value.
An optimistic view towards Bitcoin
One of the positive aspects of Bitcoin’s price surge that occurred this week is the optimistic view from the mainstream media and high profile investors. Amid the price spike in June, investors and traders were able to pinpoint particular reasons behind the increasing value. In June, it was Brexit, which pushed Bitcoin to multi-month high trading prices.
However, this month’s performance of Bitcoin is difficult to generalize as the price of Bitcoin continued to increase amid global economic and financial instability. For instance, when the Chinese government announced its plans to crack down on wealth management products, the price of Bitcoin increased slightly. The price of Bitcoin also was on an upward trend when the Indian government demonetized certain banknotes and created a nationwide financial wreckage and panic.
Thus, as investors like Mati Greenspan, a senior market analyst at eToro and other analysts as well as mainstream media outlets state that the recent surge in the value of Bitcoin can simply be attributed to the general population treating Bitcoin as a global currency and protection asset. In other words, Bitcoin has officially become a global safe haven asset.
This piece ran on CoinTelegraph
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