The leading cryptocurrency bitcoin broke above the $16,000 level for the first time in almost three years. The price of bitcoin has increased by as much as 325% from the lows that it witnessed back in March 2020 as the COVID19 pandemic was announced. The upswing move ended a week of consolidation in the range of $14,000 to $16,000. The leading cryptocurrency is now up 123% on a year-to-date basis and has gained nearly 50% so far this quarter.
The upswing is expected to continue.
At the time of writing, the leading cryptocurrency by market capitalization is changing hands at just below $16,000. The upswing is expected to continue for now. With the U.S. election in the rearview mirror, projected President-elect Joe Biden’s stance on different aspects of the economy could influence fiscal policy over the next four years, which could, in turn, affect inflation, against which bitcoin is touted as a hedge. Kyle Davies, the co-founder of Three Arrows Capital, said that against the backdrop of stimulus from the Federal Reserve, we expect investors to hold cash and to continue to allocate to bitcoin.
Ray Dalio believes governments will outlaw bitcoin if the price keeps rising.
Ray Dalio, the billionaire hedge fund legend, doesn’t see cryptocurrencies like Bitcoin succeeding the way other people do. Dalio tweeted that authorities would clamp down on cryptocurrencies when they see “material” growth. Meanwhile, the leading cryptocurrency has hugely outperformed Bridgewater year-to-date. Barry Silbert, CEO of Grayscale — a cryptocurrency investment firm with over $9 billion in assets under management. Bridgewater is a hedge fund that manages $148 billion in assets under management as of September 2020. If cryptocurrencies see material growth, Dalio believes governments would likely ramp up their efforts to restrict them.