The dollar is down and Bitcoin is heading towards $ 50 thousand
The dollar fell to its lowest level in a week on Tuesday, as the decline in US Treasury bond yields raised doubts about the outlook for the performance of the US currency in light of the approaching approval of a large fiscal stimulus package in the United States.
But the digital currency, Bitcoin, has jumped to new highs and is heading towards another major level, which is $ 50 thousand. Bitcoin’s value has increased by more than 1,000% since March 2020 at the start of the Covid-19 pandemic. Analysts say forecasts of $ 100,000 this year are no longer imaginative.
Investors have pushed the dollar higher in recent weeks, as Democrats move quickly to approve a $ 1.9 trillion coronavirus relief package proposed by President Joe Biden, but some analysts said that large fiscal spending accompanied by the continuation of the Federal Reserve’s ultra-easy policy will be two factors opposite to the green currency.
Yesterday, Bitcoin rose to an all-time high after Tesla said it had invested $ 1.5 billion and would begin accepting cryptocurrency as a method of payment.
Prices jumped to touch levels of $ 45,000 in Monday’s trading in London. These leaps came after Tesla announced that it would accept Bitcoin as part of an update to its investment policy, according to one of the documents.
This is another sign that the cryptocurrency is gaining widespread traction as an investment type. Enthusiasts often tout the digital asset as a hedge against inflation and a store of value in a world awash with incentives and money-printing from a rampant central bank.
A few days ago, the results of a Bank of America survey of its investor clients whose assets exceeded the barrier of half a trillion dollars showed expectations of continued momentum in Bitcoin trading during the coming period after the buying fever that befell investors last year, which caused record gains for the cryptocurrency during the past year amounting to about 400%.
And Bloomberg Agency said in a report in which it reviewed excerpts from the report that for the first time since 2017 that Bank of America clients, whose assets amount to about $ 561 billion, have accumulated that Bitcoin is the most traded investment asset amid an unprecedented state of speculation sweeping Wall Street over the cryptocurrency. .
The report continued, “Investors surveyed by the bank this month see signs that long-term positions in the largest cryptocurrency have reached unprecedented levels at a time when individual and institutional investors alike head towards catching the wave of the cryptocurrency’s rise.”
Dr. Saifuddin Amos, a Bitcoin expert, said that the cryptocurrency over the past three years has witnessed a maturity in the quality of its transactions.
He explained that the investments of major companies in Bitcoin, the most recent of which is Tesla, means the fall of the fear of the currency, and the exclusion of the idea that it is a currency to evade taxes, and is considered to have a fundamental role in the financial system.
He explained that the annual rate of rise in the past ten years in Bitcoin currency amounted to about 200% per year, and we have not seen it in any financial asset in history.
He pointed out that the supervision of central banks did not prevent the cryptocurrency from growing, noting that it was the major economies that allowed the circulation of the cryptocurrency and recognized it as a financial asset.