Bitcoin, the largest cryptocurrency, for the first time scaled past levels of $20000 on strong demand from both retail and institutional investors. In today's session, the digital currency jumped 4.5% and hit an all time high of $20440. In India, the bitcoin price last quoted higher by 7% at Rs. 15,20,759 as per in.investing.com.
The token's return on a year to date basis in 2020 has been over 170 percent driven by its demand from large investors who are lured considering potential for fast gains, supposed inflation-resistant nature and on hopes that it will be accepted as a mainstream payment system.
Tom Fitzpatrick, technical analyst at Citi is of the view that bitcoin could soar to levels of $318,000 by the end of next year on limited supply, ease of movement across borders as well as opaque ownership.
Brian Estes, chief investment officer at hedge fund Off the Chain Capital estimates that bitcoin could climb between $100,000 and $288,000 by 2021 end. This is based on a model that employs the stock-to-flow ratio which measures the limited availability of commodities such as gold. That model, he said, shares a 94 percent correlation with the price of bitcoin.