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Bitcoin Jumps To $28,500 For the First Time Ever

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Bitcoin has sustained its surging topping $28,500 for the first time ever on December 30th of 2020 and is up around 47% so far in December, on track for its biggest monthly gain since May of 2019. The crypto currency has almost quadrupled in value this year driven by institutional buying and its appeal as a hedge against potential inflation and currency debasement resulting from the massive central bank and government stimulus measures to shore up economic growth. As the US dollar has declined, Bitcoin has become a more attractive investment amid concerns that huge government stimulus packages prompted by the coronavirus pandemic will fuel inflation. In the US, a bigger package could be passed once Joe Biden has replaced Donald Trump as president. On Wednesday, December 30, 2020, the dollar dropped to its lowest level since April 2018, when measured against a basket of currencies. The US currency is under pressure as investors move into riskier assets, betting on a strong economic recovery next year as coronavirus vaccines are rolled out. The vaccine developed by Oxford University and AstraZeneca was approved in the UK on Wednesday.

Bitcoin has also been boosted by expectations that it will become a more mainstream payment method. PayPal has launched a crypto trading service on its platform and has reportedly bought nearly 70% of all new Bitcoin in circulation. A number of hedge fund managers have revealed this year that they have invested in the cryptocurrency.

As value for Bitcoin continues to rise the Mayor of Miami, Francis Suarez, says he is open to exploring the idea of investing 1% of the city’s treasury reserve into Bitcoin.

The chief technology officer of the crypto exchange Bitfinex, Paolo Ardoino, said bitcoin could draw more interest from a broader audience, not just fund managers. “While a growing institutional presence has been part of the narrative of the current bull run, we may see increased retail interest in bitcoin as a form of digital gold,” he said.

Cryptocurrency traders remain optimistic that more gains are expected within the coming days, with some predicting a rise to $30,000. 

US President-elect Joe Biden has criticized the Trump administration for its pace of distributing Covid-19 vaccines and predicted that “things will get worse before they get better” when it comes to the pandemic.

“We need to be honest, the next few weeks and months are going to be very tough, very tough for our nation. Maybe the toughest during this entire pandemic,” Biden said during remarks in Wilmington, Delaware.

His comments came as the coronavirus pandemic has killed more than 336,000 Americans, with experts warning holiday travel and gatherings could precipitate yet another spike in cases, even as the virus has already been surging in states nationwide.

Biden went after the Trump administration over their vaccination efforts, warning that the project, dubbed Operation Warp Speed, was moving at a slower pace than needed.

 

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