Bitcoin Surges To New High!

Bitcoin surged to a record all-time high on Wednesday, following a weeks-long price rally. The cryptocurrency is now up more than 50% since the start of October, overtaking the market value of tech giants like Facebook and Tesla.

After breaking the $64,800 record reached in April, BTC continued to climb and was trading above $66,000 on Thursday morning. It marks a remarkable recovery for bitcoin, which crashed below $30,000 in July. Other leading cryptocurrencies have also mirrored bitcoin’s gains, most notably Ethereum (ether) and Solana (SOL), which are both up more than 10% over the last 24 hours.

The price increases saw the overall crypto market cap also climb above its previous all-time high, reaching above $2.6 trillion. Several prominent crypto analysts believe bitcoin is now on the second major leg of a bull run that will take it above $100,000 before the end of 2021, though others have warned another major crash could follow. But what’s driving the run?

While most accept that bitcoin momentum has shifted steeply upwards since the end of September, some commentators are not convinced the anticipation of ProShares’ Bitcoin Strategy ETFs launch was the main reason.

Rather, the perception of bitcoin as a better inflation hedge than gold is the main reason for the current upswing, triggering a shift away from gold ETFs into bitcoin funds since September.

Investors are getting more worried about increased rates of price rises, and that has revived interest in inflation hedges, including the use of bitcoin as a hedge.