They said it couldn’t happen again, folks, but they were clearly wrong. After scathing reports from financial giants like JPMorgan emerged claiming that bitcoin could never hit the $40,000 mark again, the asset has done just that. At the time of writing, bitcoin – the world’s number one digital currency by market cap – has shot past the $40,000 mark.
Bitcoin Does What Many Felt Was Impossible
In late January, JPMorgan took notice of the sudden decline bitcoin was experiencing. At the time, the asset had fallen into the mid-$30,000 range after trading beyond $40K just a few weeks earlier. The currency had hit a new all-time high in early January and things were looking better than they ever had before, though the sudden dip caused many people to lose confidence.
JPMorgan told traders in its report that the strike of the $40,000 chord wasn’t likely to happen again, and that investors should probably get used to feelings of disappointment. However, roughly two weeks later, bitcoin has done what they and other analysts working with large monetary institutions claimed it could no longer do.
The heavy spike comes this week after bounds of new praise from the likes of Elon Musk, the South African entrepreneur behind mega companies such as SpaceX and Tesla. Not too long ago, Musk changed his Twitter bio to #bitcoin and said that the asset was a “good thing.” He also commented that it was likely to attain “widespread acceptance” in the coming days, something that brought a lot of hope to traders everywhere.
Musk’s relationship with bitcoin has been relatively up and down in the past. While he has certainly issued praise before, he has also issued some rather scathing remarks and at one point, even referred to bitcoin being as “bs as fiat.”
Either way, Musk acknowledges that he’s relatively late when it comes to jumping on the bitcoin bandwagon, but better late than never, right? The words from the tech master appear to have shoved bitcoin into bullish territory again. The currency – which was trading for around $32,000 just before Musk issued his comments – later jumped to $34,000, incurring a $2,000 spike in just a matter of days. From there, the currency rose to $37,000. It has now jumped back towards its early January high.
It’s Still Got It
Perhaps the best news in all of this is the fact that bitcoin, while incurring a few slips here and there, has managed to stay relatively stable over the past few weeks. The currency has been surging since last October, jumping from around $10,000 to its present price. During the past several days, bitcoin has fallen, though not by much, and it did manage to stay above the $30,000 mark throughout what has been a relatively wavering time.
This and its latest jump to $40K is further evidence that the asset is still on the warpath, and likely to maintain at least some of its momentum throughout the new year.