Economy

Bitcoin hits a record high of $ 28,000

Scaramucci: Bitcoin is due for a correction
The digital currency has a northern market value of $ 500 billion. Do you think Bitcoin is just a fad? Worth more than visa (Fifth) or Master Card is a credit card (MA). or Walmart (WMT).
Bitcoin Exceeded $ 20,000 For the first time in just 11 days. Now the door is knocking at $ 30,000.

Its rapid rise was noticeable – or insane, depending on your risk appetite. But there is some logic in the previous period: Investors were pouring money into Bitcoin and other cryptocurrencies during the Covid-19 pandemic as the Federal Reserve sent interest rates near zero (and expects to keep them there for several more years), weakening them severely. U.S. dollar.

This makes Bitcoin a relatively attractive currency. There is a certain limit to the number of bitcoins on the planet, and investors believe that once the supply runs out, the value of the digital currency can only increase.

It also helps with the bitcoin’s high valuation: Big branded investors are hoarding it, and huge consumer companies are embracing it. This adds a dose of viability and appeal to cryptocurrencies for ordinary investors. For example, a senior executive at Black stone (BLK) He recently said that cryptocurrency could replace gold, and Field (Sk) And the PayPal (PYPL) Both have embraced Bitcoin.
As Bitcoin rose to an all-time high, cryptocurrency broker Coinbase, the most prominent cryptocurrency exchange, indicated that it was Determined to become a general.
However, the recent boom in cryptocurrency is showing signs of collapse – excessive enthusiasm fueled by fear of missed opportunities, not just market fundamentals. Take Elon Musk’s mocking tweet about Bitcoin’s rival Dogecoin last week: The digital currency, which itself was created as a cryptocurrency parody, Rose 20% Right after Musk threw his support behind him on Twitter.

Anhony Scaramucci, founder of Skybridge Capital, has a large stake in Bitcoin, but even says people need attention. He told CNN Business earlier this month that it could be a solid addition to the average investor’s portfolio – but you have to be bold for that.

On Live show “Market Now” on CNN Business Earlier this month, Scaramucci said that people are starting to accept bitcoins – and since they appear in very few wallets, it has plenty of room to grow. However, Bitcoin is a volatile asset and would be a risky possession if you invested in it.

“This thing tends to collapse,” he said. “This is because of the correction, and these corrections can be violent.”

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Scaramucci said bitcoin could suddenly drop 20% to 50%.

“You have to be very careful,” he added.

But it also highlights Bitcoin’s survival strength over the past decade: If you take one dollar and put 99 cents of it in cash and a penny into bitcoin, this investment strategy would outweigh the one dollar invested in Standard & Poor’s 500 (SPX) He pointed out that during the past ten years.

“Bitcoin’s best days are ahead of it, but it’s going to be fickle and I think people need to prepare for it,” Scaramucci told CNN Business.

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