The Bitcoin train looks to march on with over 2% gains today as it keeps just under $122,000 currently. After a brief stutter at the end of last month, which saw price potentially falling back under six figures, Bitcoin is definitely proving its mettle now as it surges to fresh record highs.
The last time we had an episode like this was the break of the $72,000 mark last year. Just before that, Bitcoin threatened a drop under $50,000 before jumping up by 50% on the break to the upside. Will we see similar gains this time around?
There are certain quarters of the market arguing that this is in part a larger trend of diversification among investors. And in turn, a move away from dollar assets in general since April. Gold is one that has benefited from that, alongside concerns about the US fiscal situation.
Elsewhere, Ethereum is also trading back up to above $3,000 today as the broader rally among cryptocurrencies pick up.
As we see a surge in cryptos, it’s leading to a broader trend among people looking to spend/wash their money as well. I wrote about one aspect of it last week here.
This article was written by Justin Low at www.forexlive.com.