Bitcoin rose nearly 20% this week, surpassing $ 22,000 for the first time, and raised expectations that the world's largest cryptocurrency would go ahead. On Thursday, bitcoin rose 4.6% to around $ 22,173, then made some gains. Both the Bitcoin and Bloomberg Galaxy Cryptocurrency Index have more than tripled this year. Cryptocurrency stocks also gained momentum in South Korea, Japan, and China.
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Considering the rapid rise and fall in the history of bitcoin, this increase in digital assets has also triggered polarized views. Proponents believe that cryptocurrency is squeezing the position of gold as a diversified option in the investment portfolio under the pressure of a falling US dollar and possible inflation. Others believe that it is a speculative boom that will inevitably cause bitcoin to reproduce a sharp declining trend after a sharp rise three months ago.
However, there are signs that with quantitative funds that track trends, long-term investors such as asset managers and family offices are playing a large role in this rally. Guggenheim's chief investment officer, Scott Minor, said on Bloomberg TV on Wednesday that the shortage of bitcoin, coupled with the companies large amount means that bitcoin should eventually rise to much higher than the current price.
Well if can go much higher because of its limited supply and such huge demand in the recent years