Cryptocurrency

Bitcoin surges to new highs, analysts warn about price sustainability

Bitcoin soared to yet another record high on Wednesday, a day after the virtual currency vaulted to the $50,000 hurdle, even as analysts warned against the sustainability of such prices amid elevated volatility.

The world’s biggest digital currency, which has a market capitalization of over $900 billion, hit a record $51,721.15, fueled by signs that it is winning acceptance among mainstream investors and companies, such as Tesla, Mastercard and BNY Mellon.

Bitcoin was last up 3.68% at $50,990.6.

Despite the flurry of mainstream acceptance this year, some analysts warned that bitcoin was still far from becoming a widely used form of payment.

“Bitcoin presently is not an efficient manner for high-volume transacting, and it is certainly not a store of value as its price volatility at 80% is a dozen times higher than the euro and sevenfold of the Russian rouble,” said Harley Bassman, managing partner at Simplify Asset Management.

Separately, U.S. broker Wedbush said it sees less than 5% of public companies heading down the bitcoin investment path in the next 12 to 18 months.

 

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