Bitcoin kicked off this year on a grand scale. According to the Binance exchange, on the first day of the new year, the bitcoin exchange rate rose to $29,600, on the second day to $33,300, and by the third day of January, it has already overcome the level of $34,000. In just three days, the growth of the cryptocurrency was 17%.
However, by January 4, the quotes fell by almost 16%, to $29,180. Despite this, the cryptocurrency did not greatly disappoint investors who believed in it and ended yesterday's trading with an insignificant decline, losing only 2.8% and falling to $32,000.
Today, bitcoin was initially trading in the red zone, but at the time of writing this article, it moved to growth, adding 4.5%, and eventually traded near the $31,590 mark.
Many experts predict that in 2021, the bitcoin exchange rate may well soar to $90,000.
Rosenberg Research strategist and part-time former Merrill Lynch economist David Rosenberg believes that, at the moment, we are witnessing a bloated bubble in both the cryptocurrency market and the stock market. Such active trading with a weakened economy cannot lead to anything good. Rosenberg believes that some assets today are highly overvalued, at least by 20-30% on a number of different indicators. And the biggest bubble, according to the expert, is the most popular cryptocurrency – bitcoin.
This incredibly rapid growth of the digital currency in a short period (just a few months) may not be normal. But despite this verdict, the Rosenberg Research strategist is confident that as long as interest rates remain at the lowest possible level, the bubble formed in the markets will not burst. Low rates and budget incentives encourage investors to invest in various alternative assets, including cryptocurrencies.
At the same time, David Rosenberg advises investors to pay special attention to the assets of the utilities and energy sectors in the coming year. Rosenberg called gold the most reliable asset, explaining that this precious metal is five times less volatile than bitcoin.