Bitcoin exceeds $40,000 for the first time.

Bitcoin exceeds $40,000 for the first time.

At around 18:50 GMT, the main cryptomony was trading at $38,950, up 6.52% on the session, after rising shortly before to around $40,380.

The price of Bitcoin surpassed $40,000 on Thursday for the first time in its history, taking advantage of market optimism linked to the certification of Joe Biden’s election in the United States, and continuing its spectacular surge in recent weeks.

At around 18:50 GMT, the main cryptomony was trading at $38,950, up 6.52% on the session, after rising shortly before to around $40,380, according to prices compiled by Factset, in a market that has been extremely volatile for the past two months.

« Now everyone knows about Bitcoin and everyone wants a piece, » he adds, knowing that individuals can buy a portion of it. But he adds that « of course, institutional investors are leading the way.

The price of Bitcoin broke record after record at the end of 2020, and had reached the 30,000 dollar mark only on Saturday, and 35,000 on Wednesday, prompting many observers to advise caution to individual investors in the face of a surge that could raise fears of a bubble with a correction in the key.

« When it goes down, it’s gonna hurt. »

"When it goes down, it's gonna hurt."

He notes that high-frequency brokerage systems could trigger profit-taking if the uptrend loses momentum around the $41,500 threshold, although many analysts expect the momentum to continue to the $50,000 threshold before what many believe is an inevitable correction.

« It’s starting to be worrying, it’s not the same market as a few weeks ago, the correction is inevitable, » added a European analyst who wishes to remain anonymous.

A form of digital gold

A form of digital gold

For many market players, Bitcoin represents a form of digital gold, a means of hedging against inflation that could be created by the ultra-accommodating monetary measures adopted by many central banks, led by the U.S. Federal Reserve (Fed).

JPMorgan analysts estimate that Bitcoin could reach $146,000, provided that its volatility subsides to attract investors who currently prefer the more stable gold.

Analysts at Société Générale are wondering whether bitcoin will be able to compete with gold, which has won the confidence of investors throughout its 3,000-year history. Another medium-term hypothesis for the cryptomoney industry, according to them: « if the recent rise is reversed in the coming months, we will probably talk about the pandemic bitcoin bubble ».

At the end of 2017, private individuals had rushed to buy this currency created by anonymous individuals in 2009, but after several months of rising prices, its price collapsed in December and early 2018, and many investors who arrived late in the race lost their stake.

Over the years, far from joining the gallery of forgotten assets once their bubble burst, Bitcoin has nevertheless seen its price rise, and is now attracting more and more professional investors, impressed by the resilience of cryptomoney.

Bitcoin exceeds $40,000 for the first time.
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