Bitcoin’s momentum showed few signs of slowing on Friday, as prices pushed to a new all-time high after blowing through $40,000 for the first time.
In traditional markets, Asian and European shares rose and U.S. stock futures pointed to a higher open, as investors bet that a dismal jobs report expected early Friday from the Labor Department on the December employment situation would strengthen the case for additional economic stimulus. Gold weakened 1.1% to $1,893 an ounce.
Yields on 10-year U.S. Treasury notes jumped Thursday to 1.07%, the highest since March, as traders focused on the potential for faster inflation under a U.S. government controlled by President-elect Joe Biden’s Democratic party, according to the Wall Street Journal.
Market Moves
Bitcoin has climbed more than 40% in the first eight days of 2021 – after a quadrupling in 2020 and doubling in 2019 – and some analysts are turning wary.
“We are very much in speculative bubble territory now, and while I don’t think it’s done, it’s becoming increasingly likely that it’s going to get messy,” Craig Erlam, senior market analyst for the London-based foreign-exchange broker Oanda, wrote in an email. “I previously said I wouldn’t be surprised to see $50,000 before the end of the month and I’m now thinking that was too conservative. The last $10,000 move only took four days. It’s getting silly now.”
First Mover reached out to investors, analysts, executives and one finance professor for their views on whether a correction might be in the future. TL;DR: Yes. Here’s what they said:
- Joe DiPasquale, CEO, BitBull Capital, a cryptocurrency-focused hedge fund. He says bitcoin “has been and remains extremely volatile.” As recently as Monday, he noted, after prices had climbed to a new all-time high, they tumbled almost $7,000. “What causes this is that people can use lots of leverage, so they can…
