Bitcoin (BTC) has hit another record on Wednesday in the early Asian trading hours as the it continued its bull run to go beyond the key $35,000 level.
This solid upward rally is significant as the prices soared from the $30,000 level to hit the new all-time record in merely 24 hours, which is a daily gain of more than 16.6 percent. The flagship cryptocurrency is now testing this key level with strong signs of a bull run. BTC is trading at $34,077 at the time of writing.
Bitcoin is having a sharp upward rally lately. Since Bitcoin hit the record of $20,000 level last month, the prices surged at a tremendous rate: from that level to the new high in around 20 days. For a contest, that is a gain of 75 percent in value.
Institutions Are All In
Both retail and institutional investors’ demand for the digital currency spiked and the crypto exchanges are also setting records in volume.
Though there are many reasons behind this rally, one of the key reasons is the growing institutional investment in the cryptocurrency. Nasdaq-listed MicroStrategy was among the first to set the trend with its $250 million investment and later increasing it to over a billion dollars. Other firms, including American mutual fund leader, MassMutual follow suit and adopted $100 million worth of Bitcoin.
Moreover, Hedge funds weighed in, and Anthony Scaramucci’s SkyBridge Capital launched a new Bitcoin fund.
Additionally, the crypto market sentiment strengthened as JP Morgan Chase, the largest Wall Street bank and a previous Bitcoin critic, recently predicted a long-term Bitcoin price of $146,000.
Fear Is Growing
Despite the promising sentiment, many are also getting skeptical with the extreme bull run. Crypto derivatives traders are cutting leverage positions and as CryptoQuant CEO, Ki-Young Ju articulated it: “$BTC derivative traders are uncertain about the next move, and scared.”
Moreover, SkyBridge’s Scaramucci warned about a possible Bitcoin bubble as the rising prices are creating a FOMO sentiment in the markets, which might result in extreme profit booking.
“This could be a blow-up top bubble. We expect the fund to be volatile and it could lose money,” Scaramucci recently told CNBC. Interestingly, SkyBridge’s pitch to its Bitcoin fund investors called the original crypto “better at being gold than gold.”