“Digital currencies are becoming a bigger part of financial architecture and client portfolios”– Paul Ebeling
Tuesday, Bitcoin (BTC) extended gains to a record high as investors believe it will become a mainstream asset class for both corporations and money managers.
Bitcoin has more than 2X’d over 2 months as institutional investors search for alternative wealth storage and retail traders buy the headlines. Monday’s rise was its largest daily gainer in more than 3 yrs.
The world’s oldest and largest cryptocurrency marked a new high at 48,216 late in the Asian afternoon Tuesday. Ethereum (ETH) marked a record high at 1,784.85 early Tuesday morning.
Shares of companies that provide trading platforms for Bitcoin and the technology to mine the cryptocurrency in China, SKorea, and Australia, and big computer chip making companies also rose.
The USD is trading lower on the day in Asia.
Bitcoin is already up 62% YTD, on Top of a 300% rally last yr, as investors search for alternatives to USD because of the Fed’s Zero interest rate policy.
Central bankers and regulators are also starting to embrace issuing their own digital currencies for everyday use. This is a major break from the conventional workings of global finance.
Just In: Beijing will issue RMB 10-M ($1.55-M) worth of digital currency to residents that can be used during the Lunar New Year holiday starting Thursday, domestic media reported.
The Chinese are expected to send billions of RMB Yuan to each other during the weeklong holiday via chat apps such as WeChat, that is the digital versions of traditional Red Envelopes filled with cash.
Have a healthy day, Keep the Faith!