By Yasin Ebrahim
Investing.com – Bitcoin climbed Friday, putting the popular crypto on the cusp of testing its all-time high as the hunt for yield continues to drive investors further out on the risk spectrum.
Investing.com Bitcoin Index rose 0.2% to $37,587, moving closer to its record high of $41,616.
The move follows strong gains earlier this week for bitcoin as its reputation as a store of value continues to enhance its allure.
But with most institutional investors still on the sidelines, there are ample funds yet to enter the fray. Once that happens, investors will likely take bitcoin beyond its recent highs, experts said.
"In the medium term, investors can expect the price to touch $50,000 to $100,000, with the current bull cycle targeting $300,000 a coin, Florian Grummes, managing director of Midas Touch Consulting, said in an interview with Kitco News. "If Bitcoin does the same thing in the last bull market in 2016 and 2017, we’re going to $320,000 this time."
Grummes added that he doesn’t see bitcoin falling below its previous 2017 high of $20,000, but cautioned the road higher for the cryptocurrency is likely to be paved with uncertainty.
Others, meanwhile, have highlighted evidence of bitcoin's emerging status as a higher-yielding safe-haven than gold as a further reason for optimism.
Grayscale’s Bitcoin Trust has increased close to 700,000 bitcoin, while gold ETFs have dropped to roughly 109 million ounces from 111 million in October 2020.