Connect with us

Hi, what are you looking for?

Editor’s Pick

Bitcoin hits record high amid inflation fears

Bitcoin rose an all-time high this morning, riding a wave of renewed momentum and boosted by inflation fears.

The world’s largest cryptocurrency was trading as high as $68,564 in Asia after gaining more than 7 per cent to $66,300 yesterday. Its previous record was $67,017 scaled last month.

Supporters of bitcoin have been buoyed by last month’s long-awaited listing of America’s first exchange-traded fund linked to the cryptocurrency, which bolstered confidence surrounding its future and was seen as another breakthrough on its progress from the fringes of global finance.

Analysts at Jefferies said the launch had brought “the whole crypto asset class into the mainstream”.

The Commonwealth Bank, Australia’s biggest bank, has since said it will offer crypto trading to retail customers through a partnership with Gemini, the US-based exchange, and Singapore has moved to establish itself as a key player for cryptocurrency-related businesses, saying the “best approach is not to clamp down or ban these things”.

However, Andrew Bailey, the Bank of England governor, said yesterday that the rise of crypto assets was helping illegal activity. “The advent of digital means of payment, and in particular crypto assets … is providing another means of payment for people conducting criminal activity,” Bailey said during an online Q&A organised by the Bank.

Bitcoin was created in 2009 as a means of payment for goods and services but to date it has mainly been used in speculative trading. Supporters argue this is on the cusp of changing amid mounting interest from investors and consumers alike. Earlier this year Tesla briefly accepted bitcoin as payment for its vehicles before Elon Musk, its chief executive, suspended the move as a result of environmental concerns. Uber and Twitter have both raised the prospect of accepting the asset as payment and using it to pay some staff.

Ethereum, the world’s second largest cryptocurrency, reached a new all-time high as other digital assets tracked bitcoin higher yesterday. It was trading up 2.6 per cent at $4,727.47.

In recent weeks brokers say that investors have been piling into bitcoin and other assets, such as gold, seen as an inflation hedge. Some seem to have been persuaded by arguments that central banks’ vast stimulus programmes are heightening inflation and risk denting the value of conventional money.

Prominent cryptocurrency supporters were in bullish spirits yesterday. “Bitcoin feels like it’s gonna have a 7 in front of it soon,” tweeted Cameron Winklevoss, co-founder of Gemini.

Bitcoin’s latest rally follows a turbulent year of trading that has underlined the currency’s volatility. It hit record highs in the spring before a sharp pullback, triggered in part by apprehension at its environmental impact: it takes a lot of energy to “mine” new bitcoins using powerful computers.

Policymakers including Janet Yellen, the US Treasury secretary, have expressed concern about its role in illicit financial transactions.

In September, China, once the centre of bitcoin mining, declared all transactions in the country involving crypto to be illegal.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

REUTERS TRADE Secretary Alfredo E. Pascual’s intention to join more free trade agreements received backing from major business chambers, who declared support for participating...

News

NATIONAL IRRIGATION ADMINISTRATION PHOTO RELEASE SUBSIDIES provided to government-owned and -controlled corporations (GOCCs) declined by 82.31% year on year to P7.905 billion in May,...

News

PHILIPPINE STAR/ MICHAEL VARCAS AGRICULTURE and fisheries planning needs to be more “bottom-up” to better meet the needs of farmers and fisherfolk, steering away...

News

REUTERS ERIC BROTEN had planned to sow about 5,000 acres of corn this year on his farm in North Dakota, but persistent springtime rains...

News

(First of two parts) Family-run businesses require structures that are necessary to ensure a smooth transition. In the Philippines, the wealth of ultra-high net...

News

THOUSANDS of supporters of President Ferdinand “Bongbong” R. Marcos, Jr. are unfazed by the rain during a free concert held in Manila on the...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.