Bitcoin reaches $34,000 milestone as 2021 kickstarts

The currency had advanced almost by 50 % in December 2020 after it surpassed $20,000 for the first time

Web Desk

January 03, 2021

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken November 19, 2020. — Reuters/Dado Ruvic/Illustration/File Photo

Bitcoin has shattered the $34,000 benchmark
Supporters of bitcoin say the currency could act as a store of wealth
The currency had advanced almost 50 % in December by surpassing $20,000 for the first time

The world’s largest cryptocurrency, Bitcoin, has shattered the $34,000 benchmark just weeks after passing another major milestone, Bloomberg reported.

Supporters of the currency have opined that the coin could act as a store of wealth amid supposed rampant central-bank money printing, even as inflation remains mostly muted.

It advanced by almost 50% in December when it surpassed $20,000 for the first time, however, the currency gained as much as 7.8% to $34,182.75, before slipping to about $33,970 as of 3:05 pm on Sunday in Singapore.

According to the report, the latest gains top an eye-popping rally for the controversial digital asset in 2020, which rebounded sharply after a severe crash in March that saw it lose 25% amid the coronavirus pandemic.

The managing director of the world's biggest crypto lender, Nexo, said that the currency “will be on the road to $50,000" probably in the first quarter of 2021.

"Institutional investors returning to their desks this week will likely boost prices further after retail buying over the holidays," he added.

Meanwhile, experts suggest that there are reasons to be cautious, partly since Bitcoin remains a thinly-traded market.

The currency slumped as much as 14% on November 26 amid warnings that the asset class was overdue a correction. The big run-up in price in 2017 was followed by an 83% rout that lasted a year, the publication highlighted.