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Bitcoin Hits Record High as Experts Tout $100K Next Stop

Published 01/07/2021, 03:24 PM
Updated 01/07/2021, 03:35 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – Bitcoin surged to a record high of $40,000 Thursday, and experts say the popular crypto can continue to ride on the coattails of institutional demand and risk-on momentum to above a six-figure price target.

Bitcoin rose 10.48% to $38,515, though had hit a high of $40,383.4, taking its market capitalization, often used to gauge demand, to over $717 billion. 

Bitcoin is "probably going to $100,000, then $150,000, then $200,000," Chamath Palihapitiya, chief executive of Social Capital, said in an interview on CNBC about how much longer the rally can continue. He added, however, that there was uncertainty over the time horizon when the popular crypto would reach those milestones.

Recent events including the eroding of trust in the public sector officials have stoked demand for bitcoin amid a growing need to have insurance that "provides an uncorrelated hedge," but eventually the popular crypto will "transition into something much more important," Palihapitiya said.

Signs are already beginning to emerge that bitcoin is on the cusp of evolving beyond its use as a hedge.

PayPal Holdings Inc (NASDAQ:PYPL) chief executive said its users will be able to use cryptocurrencies [available on PayPal] as "a funding source later this year to buy at any of our 28 million merchants … their promise is to use modern technology to enhance the utility of payments."

In October last year, PayPal, with over 300 million active users, announced that it had entered the cryptocurrency market, allowing its users to buy and sell bitcoin and other virtual currencies using their PayPal accounts.

The strong demand from users has seen bitcoin buying and selling volumes on PayPal's platform rise by more than 500% in the last two months, with transaction volumes rising from around $20 million in November to more than $100 million, according to Paxos-owned ItBit, PayPal's exchange provider.

Latest comments

Roughly 2% of the anonymous accounts hold roughly 95% of the asset..
Hello everyone on this wonderful platform.I'm Anu Adex by name a noblest to this so called Cryptocurency but av been trying to get how I can participate in this ocean of becoming financially free and successful. If I can get help on to go about this I will be very happy, grateful, appreciated.?
I bought some Ethereum at 730.. feel like the middle child when bitcoin rallies 5k and Eth only moves 40$ 🙃
look look look look at the moon telling me how does he need a 11 to 11:30 762 Boulevard Rocky Point Wisconsin easier work a reminder for 4 to call home company Flanigan alarm 2 minutes
the only big deal in crypto is that 'service providers' charge huge trading fees... 1-2-3%. institutions dont hype it to own but to get xxxx loads on trading fees.
everybody talks so negative..careful bull trap post
'experts' 😂😂😂and whom did you ask? Mr. Ponzi himself?
seven days to fall
...ok, then take profit on day six and go directly to increase positions into gold and solar energy.
bitcoin the next wave of currency...this is only the beginning...by the next 5 to 10 years bitcoin will be ruling...remember this is just the starting of the crypto currency era...
Will go down to 15 k later this year
Will go down to 15 k later this year
I belive that BTC will go above 100k
Everybody talks so negative... Go Bulls! 💪 Straight to the top!🎯
gold and silver can also drop quickly. now is a good time to hold cash.
year 2018 happened same and suddenly falls back to $4k
ikr, another bubble waiting to burst.
Careful If it's too good to be true post. House of cards can fall anyday ..
Careful Bull Trap post. House of cards can fall anyday ..
Experts - lol
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