Bitcoin Continues Upward Rally in New Year... "100,000 Dollars Within the Year" Forecast

Surpassing $34,000 in 3 Days... Optimism Persists
Market Also Sees 'Bubble' Pessimism Coexisting

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Bitcoin continued its strong rally into the new year, surpassing $34,000 (approximately 36.99 million KRW) on the 3rd (local time), setting a new all-time high. Institutional investors believe that as liquidity floods the market and flows into risk assets, Bitcoin prices will maintain an upward trend for the time being. Some even predict that Bitcoin could reach $100,000 within the year.

According to Bloomberg and other sources, Bitcoin traded at $34,792.48 during intraday trading on the morning of the same day, up 9.8% from the previous day. Bitcoin prices, which surpassed $20,000 for the first time ever on December 16, showed a rally throughout the end of the year and broke through $30,000 entering the new year. It rose more than $10,000 in less than three weeks. In the afternoon, Bitcoin prices slightly retreated from the peak and traded in the $33,000 range.

Investors forecast that all markets will maintain a bullish trend this year, as Bitcoin hit a new high even before stock markets around the world opened for the new year. The Wall Street Journal (WSJ) reported, "Investors expect further gains through a strong economic recovery after enduring the roughest year in Wall Street history, from Bitcoin to emerging markets." In particular, Bitcoin's rate of increase is faster than other mainstream assets like the New York Stock Exchange or gold.

Marcus Swanepoel, CEO of Luno, a cryptocurrency platform based in London, UK, said, "Even those who advocated for Bitcoin probably did not expect such a sudden price surge in such a short period." He added that based on past experience, there may be short-term corrections, but since the upward trend is sustained, Bitcoin could reach $100,000 by the end of this year. Antony Trenchev, co-founder of cryptocurrency lending firm Nexo, also predicted that prices would rise as institutional investors return to work this week following individual investors' purchases during the holiday period, stating, "Bitcoin is expected to reach $50,000 in the first quarter."

In the market, there is an assessment that institutional investors are increasing the proportion of Bitcoin in their portfolios, and that cryptocurrencies are transforming into a kind of mainstream asset, as evidenced by last year's online payment company PayPal recognizing Bitcoin as a payment method on its platform.

On the other hand, concerns coexist that Bitcoin still remains a speculative asset and that the current rally could be a bubble. This is because Bitcoin experienced a rapid surge from $1,000 to $19,000 in 2017, only to crash to $4,000 by the end of 2018, just one year later. Nouriel Roubini, a prominent Bitcoin skeptic known as 'Dr. Doom' and a professor at New York University, warned at the end of last month, "Bitcoin is neither a currency nor a stable store of value," adding, "Eventually, the bubble will burst."

This content was produced with the assistance of AI translation services.