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Bitcoin’s “Bull”! A new all-time high again | ZFX

Bitcoin’s “Bull”! A new all-time high again

18-02-2021 07:11

Bitcoin hit a fresh record high above $52000 level on Wednesday. This valuable cryptocurrency is now still trading at $52000 level above in Asian session on Thursday despite the rebound of the greenback, while some analysts start to warn that the surge might be unsustainable, and the major investment banks also appear to be warning about bitcoin’s volatility.

This month, in February, Bitcoin has rocketed around 58%. No matter it is a market bubble or not, people still believe that those cryptocurrencies would be a better asset to hedge against the inflation upcoming, rather than just holding gold or other “interest-bearing” assets like bonds.

One of the big “bullish” comes from the institutional side. Companies like Tesla, PayPal and Mastercard have provided strong support to Bitcoin. Major investment banks like JPMorgan and Goldman Sachs have also shown their interest in crypto. All these are the very important moves to the crypto market.

Looking back the stock market, market sentiment remained cautious on Wednesday, however attributed to the oil price, the Dow has made another record closing high, while the S&P 500 and Nasdaq continued to slip slightly. Stock markets in Asia-Pacific were lower on Thursday, following the momentum overnight, as mainland Chinese stocks returned to trade after Lunar New Year holiday.

The dollar index held its ground on Thursday at around 91 level, supported by the superb retail sales figures in January, and also the jump of PPI. Investors are now betting on a faster recovery in the US, compared to the other major peers in Europe. As the US government may further inject massive stimulus to the economy, investors restored some confidence in dollar.

ZFX analyst Jacob Leung said that, traders may now be rebalancing their portfolio after reading those data in the market. Obviously, in the short term, dollar was buoyed by the hopes on US recovery, but in long term speaking, if the inflation start to be the market attention, the Fed would slow down the QE pace, that would be very bullish to the dollar, providing that the US economy can recover so quickly from the coronavirus pandemic.


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