Bitcoin Continues Its Surge, Moving The Market To New Highs
Bitcoin continued to surge on Monday, reaching a $4,252.65 price by Noon, according to coinmarketcap.com. The crypto leader gained 5.5 points in the last 24 hours, delivering a $70.195 billion market cap. Bitcoin has more than quadrupled its value for the year and gained about 50 percent in August.
Surpassing $70 billion marks an event the cryptocurrency community has been anticipating for years: bitcoin now has a greater total valuation than payment-processing behemoth PayPal.
Bitcoin Leads The Market
Bitcoin’s 24-hour performance surpassed that of Ethereum, which rose 0.32 points, and Ripple, which lost 2.06 points. Fifth place IOTA, with a market cap of $2.473 billion, was the only top 10 crypto to post a higher gain than bitcoin, jumping 18.09 points in the 24-hour period. Seven of the top 10 cryptos lost value during the period.
For the first time since late July, bitcoin’s market valuation comprised more than 50% of the entire cryptocurrency market, accounting for 50.57% of the market, followed by Ethereum at 20.37%
Veteran stock researcher Ronnie Moas raised his price target on bitcoin Monday by $2,500 following the weekend price surge, according to CNBC.
Moas, the founder of Standpoint Research, said the floodgates are opening for millions of dollars in hedge funds and deep-pocketed individuals. Moas laid out his initial views in early July, issuing a report in August where he targeted the price target at $5,000 next year.
Moas Now Projects $7,500 Price
Moas now expects the price to climb nearly 80 percent from the weekend’s price to $7,500. He further expects the price to surge to $50,000 in 2027, marking a 28 percent annual compounded growth rate.
He expects digital currencies to become part of and “asset allocation models” and “strategic reserves.” He added that people in foreign countries will pursue digital currencies as a more stable alternative to national currencies.
Also read: Bitcoin price sustains momentum, moving closer to $4,200 as demand surges
Various Factors Fuel The Growth
Various factors are fueling bitcoin’s continuous rise.
Brian Kelly, a CNBC contributor and head of BKCM, which operates a digital asset strategy, noted that rising tension between the U.S and North Korea is also resulting in an increase in demand towards bitcoin, amidst intensified equity market sell-off.
As Kelly and others have noted, an increasing number of investors and professional traders are beginning to shift towards bitcoin from gold as the ultimate safe haven asset. The portability, transferrability and high liquidity of bitcoin have made the cryptocurrency an efficient, portable, secure and highly liquid store of value and a safe haven asset for a wide range of investors.
Moas nonetheless noted that people should understand bitcoin is not regulated, and said his digital currency holdings are spread across five exchanges.