Bitcoin has surpassed the psychological $ 25,000 level, bringing its gain in December to nearly 50%, with the 2020 bull run not showing a slowdown.
The price of bitcoin, after starting the year at around $ 7,000 per bitcoin, has gone up during the year, well above its 2017 high of $ 20,000.
However, even as the price of bitcoin continues to climb, the head of deVere’s financial advisory group, Nigel Green, has revealed that he is selling half of his bitcoin holdings.
The price of bitcoin is expected to reach the end of 2020 almost three times higher than it started in the year, exploding past … [+]
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“I’m half-sold my holdings of bitcoin because it has hit an all-time high,” Green, who has been talking about bitcoin’s prospects for years, said in an emailed statement . “Why? Because it should now be treated like any other investment – that is to say, where possible, it is better to sell high and repurchase in the dips. . “
Bitcoin sales pressure is expected to increase as the price climbs as investors try to call the top of the market. With the price of bitcoin now up 250% over the past 12 months, taking profits among long-term investors could drive the price down.
“The steady gains in the price of bitcoin have made the digital currency the highest-performing asset in 2020, up more than 200%,” Green said. “So I felt it was the right time to make a profit.”
Green remains optimistic about bitcoin’s long-term performance, however.
“There should be no misunderstanding about my decision to sell. Not because of a lack of credit in bitcoin, or the idea of digital currencies – it is now more profitable to buy later. “
Bitcoin’s image has skyrocketed along with its price this year, with the coronavirus pandemic and subsequent government spending sprees placing it sharply against fiat currencies.
As a result, bitcoin has attracted the attention of a number of big-name investors who see bitcoin as a safe haven asset and an inflation hedge.
British asset manager Ruffer Investment Management pushed bitcoin over the $ 20,000 price last week when it revealed it had bought $ 745 million worth of bitcoin, generally taken as an indication of institutional interest. rise.
As institutional investors and Wall Street giants “continue to grow into crypto, bringing with them their vast knowledge and capital, this in turn reduces consumer interest,” Green says. believes that investors will increasingly view bitcoin as a hedge against the “legitimate concern of inflation. “
The price of bitcoin has climbed 250% over the past year, this week knocking the … [+]
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Elsewhere, the bitcoin and cryptocurrency community is feeling an upbeat heading into 2021, many feeling determined by bitcoin’s performance this year.
Earlier this week, former bitcoin and crypto investor Michael Novogratz, a former hedge fund, said he will see bitcoin hit $ 50,000 next year – predicting that bitcoin will eventually “eclipse gold. “
Ray Dalio, the famous billionaire founder and co-chairman of the world’s largest hedge fund, Bridgewater Associates, admitted this month that bitcoin established itself as a “gold-like asset option . “