Bitcoin price in delhi today

Rs 70,00, for 1 Bitcoin? Some believe it’s possible; for now, it’s near it’s record of just Rs 14,00,  |  Photo Credit: Thinkstock

Bitcoin, the most popular cryptocurrency known for its wild swings and extreme volatility, has rallied like other asset classes as markets cheer new coronavirus vaccine candidates getting clearances by regulators. 

Despite a cantankerous world economy, market euphoria is fuelled by an unprecedented fiscal and monetary stimulus and balance sheet expansion by central banks worldwide. In such a cheap-money-on-steroids market scenario, Bitcoin with its built-in mechanism to avoid inflationary pressures is turning out to be a darling for investors worldwide.   

After a long wait of three years, the millennial cryptocurrency of choice has reached within attacking distance of its all-time high levels of $19, reached on December 17, It debuted at 0 in

It was last seen trading almost 1% higher at $19, levels or Rs 14,10,a-piece on Wednesday. Since January, Bitcoin gained % on back of strong institutional demand.  There are some who believe it might touch a jaw-dropping $, or Rs 70,00, lakh within a year. 

Bitcoin at $, 'no big deal' or just plain 'mania'?

Speaking to Reuters, Brian Estes, chief investment officer at hedge fund Off the Chain Capital said it had spiked as much as 30 times within a year in the past so a jump of 5 times in the next year is not a big deal.

 “Going from $18, to $, in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said. "I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal," he added. 

There are others like Tom Fitzpatrick of Citi technical who believe who said it might even touch $, levels by the end of next year.

Toronto-based Kevin Muir isn’t having and calls it a “mania”.  "Any hedge fund model on bitcoin is rubbish. You can't model a mania," Muir told Reuters. "Is it plausible? For sure. It's a mania. But does anyone actually have a clue? Not a chance,” he added.

Factors likely to aid Bitcoin surge

Cryptocurrencies such as Bitcoin have been dissed as “speculative and highly-risky” asset classes by purists but there is no stopping any idea whose time has come. Some brave analysts have even gone out and dubbed it as the new gold. 

Payment companies such as Square and Paypal are buying new Bitcoins in bulk on behalf of their million customers which is leading to a gradual crunch in supply in the market.       

Institutional participation: Industry insiders say there is reason to believe that institutional investors have taken a liking to the asset class which has also helped the recent rally.