In addition, some Wall Street firms have taken a greater interest, with many seeking to capitalise on its gains in a world of rock-bottom interest rates. Guggenheim Partners, for instance, recently said it might invest up to 10 per cent of its $US5.3 billion ($7 billion) Macro Opportunities Fund in a bitcoin trust.
Bitcoin’s cross above $US20,000 is its second major milestone in recent weeks – the coin at the end of November reached a new high three years after setting a prior peak. It had traded at a few cents for several years after its late 2008 launch by an unknown software developer in the wake of the global financial crash.
“People tend to pile into momentum trades, so bitcoin could have more upside from here,” said Ed Campbell, portfolio manager and managing director at QMA.
“Many of our clients have been expecting bitcoin to surpass its all-time high of $USUS20,000 given the recent news from major institutional players like SGX and MassMutual openly endorsing bitcoin,” said Scott Freeman, co-founder & partner at trading firm JST Capital.
“While this is a major milestone for this nascent asset class, as retail, institutional, and blue-chip investors alike allocate more capital to this space, it would not be surprising to see other coins follow in BTC’s footsteps and for this upward trajectory to be sustained into 2021.”
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