Bitcoin is a ‘great’ hedge against inflation due to its limited supply: Investment strategist
Strategic Wealth Partners investment strategist Luke Lloyd on his outlook for the market amid the coronavirus pandemic and inflation concerns.
Bitcoin, the world's most valuable cryptocurrency, reached a new high of more than $48,000 for the second time this week on Wednesday as major tech and financial companies eye virtual currencies.
Continue Reading Below
Returns for the decentralized cryptocurrency, which sat at more than $47,000 at the time of publication, were up more than 5% in 24 hours Thursday and more than 60% year-to-date, according to blockchain and cryptocurrency news website Coindesk.
Bitcoin's steady surge comes as Tesla, Mastercard, BNY Mellon and Twitter have expressed increasing interest in digital currencies.
THE BANK OF NEW YORK MELLON CORP.
Tesla said in a Monday SEC filing that the company had invested $1.5 billion in bitcoin and would start accepting it as a form of payment, and the company's founder, Elon Musk, added #bitcoin to his Twitter bio on Feb. 5 as the coin's price surged by about 20%.
"I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin," Musk said during a live-streamed interview on the popular audio chat app Clubhouse on Sunday. "Many friends of mine have tried to convince me to get involved in bitcoin for a long time."
Michael Stark, market analyst at digital online trading website Exness, told FOX Business in a statement that while Tesla's decision to buy the cryptocurrency "might look like a bubble investing in a bubble, but realistically very many assets could be said to be in bubbles.