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The price of Bitcoin surpassed $52,000 on Wednesday for the first time, adding to a 46% rally over the past month.
The cryptocurrency is already up 77% year-to-date. Following this rally, some experts see the currency doubling or more in value before the end of 2021, while others say the current price of bitcoin is unsustainable.
Todd Gordon, founder of TradingAnalysis.com sees the rally continuing.
“We are getting corporate and institutional players into the market. I think the sky is the limit. I don’t want to be overly optimistic, but only simple technical analysis can foresee resistance only when the cryptocurrency hits around $170,000,” he told CNBC.
Anthony Scaramucci, founder of investment house SkyBridge Capital, which has about $500 million in bitcoins, predicted the cryptocurrency would reach $100,000 before the end of the year, but also suggested that investors be cautious when buying digital assets. “It’s just a supply and demand situation,” the expert added.
Some supporters of the currency point to the fact that there may only be 21 million bitcoins, because of a stipulation stated in its original source code, as a factor that is likely to give the asset a higher price now and in the future.
As Bitcoin’s rally gains momentum, gold’s has declined. Over the past month, prices of the metal fell 3%.
Quint Tatro, president of Joule Financial, is betting on gold despite the recent weakness.” I have to be honest, it’s been very, very difficult to bet on gold, but we still believe that in the long term it will be in an uptrend,” he said.
Gold has risen 34% in the past two years. Prices peaked above $2,000 in August.