Bitcoin soars to record peak above $52,000, faces off red-flag on credibility issues



by   |  VIEW 823

Bitcoin soars to record peak above $52,000, faces off red-flag on credibility issues

A day after surging past a critical $50,000-treadle, Bitcoin, the world’s largest digital asset, had stretched out its latest round of blistering rally above a record $52,000 hurdle on Wednesday despite growing concerns over an upscaled volatility, while analysts had raised an alarming bell on whether the digital asset still remained credible for further investments.

If truth is to be told, recent high-tide in bitcoin valuation that surged more than 75 per cent this year thus far, was almost entirely engendered by a widespread optimism that the digital asset might be on the cusp of winning mainstream acceptance among big-league investors and financial institutions likes of PayPal Holdings, Mastercard Inc., Tesla alongside BNY Melon.

Conversely, a perspicacious bunch of analysts and economists were quoted saying that a number of institutional lenders alongside crypto brokerages had been heavily pricing in on the digital asset in order to coffer quick profits while leveraging on the gains that they had made in the global equity indices which have still been anchoring near an all-time closing high.

Amid such contentious narratives, analysts had also cautioned common traders that the digital asset might still be miles away from being accepted as a mainstream payment method and the latest leg of high-profile investments on bitcoin, could be a sign of desperation amid a high-flying global equity markets’ landscape which seemingly has little rooms to gain further.

Bitcoin breaks above $52,000 as cynicisms rise on sustainability issue

Citing statistics, in the day’s crypto market, bitcoin, the original cryptocurrency having a market cap of more than $900 billion, had spiked to an all-time high of $52,577.50, however, had wrapped up the day 6.13 per cent higher to $52,170.

Meanwhile, referring to an upscaled volatility in bitcoin valuation that potentially undermines its credibility as an investable asset, a managing partner at Simplify Asset Management, Harley Bassman said, “Bitcoin presently is not an efficient manner for high-volume transactin2g, and it is certainly not a store of value as its price volatility at 80% is a dozen times higher than the euro and sevenfold of the Russian rouble.