Bitcoin Tops $34000 After Record Gains In 2020; $4,00,000 Levels Estimated

On bitcoin's likely acceptance as a mainstream payment solution and its potential seen to as capable of producing inflation-beating return, the world's largest digital currency has scaled levels of $34000.

In December month only the bitcoin gained over 50 percent and it gained 7.8 percent to hit levels of $34000 before inching lower to $33970 mark. The controversy around this novel asset is still being there and after retreating by a huge 25% amid Covid 19 chaos in March 2020, it again drew momentum from bitcoin enthusiasts.

The currency "will be on the road to $50,000 probably in the first quarter of 2021," said Antoni Trenchev, managing partner and co-founder of Nexo in London, which bills itself as the world's biggest crypto lender. Institutional investors returning to their desks this week will likely boost prices further after retail buying over the holidays, he said.

Bitcoin has increasingly been "embraced in more global investment portfolios as holders expand beyond tech geeks and speculators," Bloomberg Intelligence commodity strategist Mike McGlone wrote in a note last month.

Also there is being seen its take as a store of value amid record money printing by global banks to tackle the economic fall-out due to the pandemic. Bitcoin should eventually climb to about about $400,000, Scott Minerd, chief investment officer of Guggenheim Investments, told Bloomberg Television in a December 16 interview.

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